Perplexity AI Valued at $18 Bn After Latest Funding Deal

Perplexity AI has secured additional funding in a deal that values the company at $18 billion, according to a Bloomberg report.

According to the report, the company has raised $100 million through this financing. This deal is an extension of a previous funding round from a few months prior, which estimated the company's worth at $14 billion, highlighting the competitive landscape in Silicon Valley, where investing in leading AI startups is a focus.

Initially, Perplexity sought an $18 billion valuation during the May funding round but encountered pushback from investors. However, after the close of that round, new investors reached out to the company and were informed they could acquire equity at an $18 billion valuation, Bloomberg reported.

The three-year-old company is positioning itself to challenge Google's supremacy in internet search and has recently introduced a browser alongside its AI-fueled search engine.

According to the Financial Times, Perplexity has been frequently speculated to be a potential acquisition target, as major tech companies like Apple and Meta aim to gain an edge over competitors such as Google and OpenAI. However, CEO Aravind Srinivas has consistently stated his desire to take the company public.

Several competing AI startups experiencing similar growth patterns have recently formed partnerships with big tech firms. These deals, including Meta’s $15 billion investment in Scale AI last month and Google’s $2.4 billion agreement to hire leaders from coding startup Windsurf, have created new exit paths for startup founders.

In India, Airtel, one of the leading telecom providers, is offering a free one-year Perplexity Pro plan through the Airtel Thanks app on smartphones.