Perplexity AI discusses raising funds at $18 billion valuation, aiming to compete with Google

From Yahoo Finance: 2025-03-20 14:14:00

Perplexity AI is in talks to raise funds at an $18 billion valuation, doubling its previous figure to meet soaring demand for its search tools. Backed by Jeff Bezos and SoftBank Group, the startup aims to compete with Google’s Gemini and OpenAI’s ChatGPT. Investors are optimistic about AI agents and chatbots.

The company is considering raising between $500 million and $1 billion in the funding round. Perplexity’s new features, like the Comet web browser, promise to understand complex queries, execute tasks, and make decisions. Its Deep Research feature can deliver comprehensive reports by conducting extensive research.

Perplexity is among the top challengers in the search engine market, aiming to compete with Google. Despite facing plagiarism accusations from media organizations like News Corp-owned outlets, the startup collaborates with news firms through a publisher partnership program. OpenAI recently closed a $6.6 billion funding round, solidifying its position as a valuable private company.

Read more: Perplexity AI in talks to raise funds at $18 billion valuation, source says