Artificial intelligence search startup Perplexity is reportedly in advanced talks to raise $500 million in a new funding round that would value the company at $14 billion, the Wall Street Journal reported, citing people familiar with the matter.
The round is expected to be led by venture capital giant Accel, with continued backing from Nvidia, which has previously invested in the company.
If completed, the raise would mark a substantial jump in valuation from the $9 billion figure Perplexity commanded during its last funding round last year. The firm has experienced meteoric growth from its valuation of $520 million in January 2024.
Perplexity’s growth
Perplexity has emerged as a prominent player in the rapidly evolving AI search landscape. The company’s core product combines natural language processing with real-time web indexing to generate concise, cited responses to user queries.
Its interface and functionality mirror some features of OpenAI’s ChatGPT and Google’s Gemini, but with a sharper focus on factual retrieval and up-to-date information. The platform has gained traction among researchers, students, and professionals seeking fast, reliable alternatives to traditional search engines.
The broader AI search space has heated up significantly over the past year, attracting billions in venture capital as large language models become more capable and commercial applications more widespread.
Investors see generative AI as the next major shift in consumer tech, with search, long dominated by Google, ripe for disruption.
Apple integration
Adding to Perplexity’s momentum is speculation that Apple may integrate third-party AI search tools into its Safari browser, potentially including Perplexity.
While Apple has not confirmed the integration, such a move would place Perplexity directly in front of millions of iOS and macOS users, significantly expanding its visibility and usage.
The latest fundraising talks follow March reports that Perplexity had been exploring a raise of between $500 million and $1 billion at a valuation as high as $18 billion.
The current reported valuation of $14 billion reflects both sustained investor interest and intense competition in the sector. Perplexity has grown rapidly, bolstered by a team with deep expertise in large language models and scalable infrastructure.
It has positioned itself as a more transparent and research-friendly alternative to AI chatbots that sometimes hallucinate facts or lack source attribution. Recently, the firm also hinted at potential crypto integrations.
The firm has not responded to requests for comment as of press time.
