Perplexity, the AI search engine startup, is making waves in the tech world as it raises another round of funding, this time aiming for at least $250 million at a valuation between $2.5 billion and $3 billion. This news follows two previous successful fundraises that have seen the company’s valuation skyrocket in just four months.
In January, Perplexity raised nearly $74 million at a valuation of $540 million, a significant jump from its valuation of $121 million in April 2023. Then, in March, the company closed a $56 million round at a valuation of $1 billion. Now, with the attention and interest it’s garnering in the market, Perplexity is looking to raise even more capital.
Investors like NEA and IVP, who have backed the company before, are reportedly interested in participating in this new round. The decision to involve existing investors or bring in new ones will depend on Perplexity’s strategy for growth and expansion.
Perplexity’s core product is a generative AI-based search engine that offers results through a chatbot-style interface. While there are other companies in the generative AI space, Perplexity stands out by incorporating a variety of language models to provide more accurate and comprehensive responses.
With a long list of investors, including big names like Sequoia, Bessemer, and Jeff Bezos, Perplexity is making a name for itself in the AI industry. The company’s focus on building AI services for specific purposes, like search, sets it apart from others racing to develop large language models.
As Perplexity continues to grow rapidly and attract attention, its latest fundraising efforts reflect the high demand for AI services and the need for capital to support innovation in this space. Stay tuned for more updates as Perplexity navigates this exciting phase of growth.