Perplexity AI: Redefining Search with $18 Billion Valuation
Perplexity AI, a trailblazing startup founded in 2022, is shaking up the internet search landscape with its AI-powered search engine.
Unlike traditional search engines like Google, Perplexity blends generative AI with real-time web crawling to deliver conversational, context-aware answers, complete with citations for transparency.
Think of it as a chatbot that doesn’t just guess—it scours the web to provide precise, sourced responses, making it a fierce competitor to Google’s Gemini and OpenAI’s ChatGPT.
In July 2025, Perplexity secured $100 million in fresh funding, catapulting its valuation to an impressive $18 billion, up from $14 billion just months earlier.
This round, an extension of a prior $500 million raise led by venture capital firm Accel, underscores the frenzied investor enthusiasm for AI startups.
Notable backers include Jeff Bezos, Nvidia, SoftBank, and Databricks, signaling strong confidence in Perplexity’s vision. Earlier valuations saw the company leap from $1 billion in April 2024 to $9 billion by year-end, reflecting its meteoric rise.
What’s next for Perplexity?
The startup is doubling down on innovation with its newly launched browser, Comet, which uses AI to handle complex queries, execute tasks, and make decisions.
Its Deep Research feature dives into hundreds of sources to produce comprehensive reports, while the Perplexity Assistant, rolled out in January 2025, enhances its app with multi-modal capabilities like camera-based queries and task management across apps.
Perplexity is also expanding globally, partnering with telecom giants like Airtel in India to offer free Pro subscriptions to millions. Despite controversies over content usage, the company has introduced a publisher revenue-sharing program to foster collaboration.
With 30 million daily queries and $50 million in annualized revenue, Perplexity is poised to challenge search giants. Its plans include scaling operations, enhancing AI tools, and potentially integrating with Apple’s Safari browser, positioning it as a leader in the AI-driven search revolution.
FAQ
What is Perplexity AI?
Perplexity AI is a startup offering an AI-powered search engine that provides conversational, sourced answers by combining real-time web searches with large language models.
How much funding has Perplexity AI raised?
Perplexity has raised $100 million in its latest round (July 2025), with a total of over $665 million across multiple rounds, valuing the company at $18 billion.
