AI search company Perplexity eyes major funding boost

AI search company Perplexity is negotiating a new financing round that could more than double its valuation to 8 billion dollars.

Perplexity, a startup in the AI search space, is in talks for a new round of financing that could significantly increase its valuation. The Wall Street Journal reports that the company is aiming to raise about $500 million, which could push its valuation to $8 billion or higher.

This potential funding round comes on the heels of three previous rounds closed by Perplexity in the last year alone. Such rapid fundraising is unusual even by Silicon Valley standards, highlighting the intense interest in AI-powered search technologies.

Perplexity's growth is reflected in its financial performance. According to the report, the company's projected annual revenue has jumped from just over $10 million in March to around $50 million currently. Its search engine now processes approximately 15 million queries daily.

Internal Knowledge Search and legal troubles

The startup has also expanded its offerings to include services for corporate clients. Its "Internal Knowledge Search" feature allows users to search both public web content and internal company databases, leveraging Perplexity's core technology.

However, Perplexity faces challenges alongside its financial success. Like other generative AI companies, it has come under fire from web publishers who claim their content is being used without permission in AI-powered search results. The New York Times recently announced legal action against Perplexity over these concerns.

As negotiations continue, it's worth noting that the terms of the potential funding round could still change, and there's no guarantee the deal will be finalized.