• Perplexity AI is in talks to raise between $500 million and $1 billion at an $18 billion valuation, doubling its previous $9 billion valuation.
  • The company has faced plagiarism accusations from media outlets like Forbes and News Corp but has introduced a publisher partnership program.

Perplexity AI is reportedly in discussions to raise funds at a staggering $18 billion valuation, according to a source familiar with the matter.

The potential valuation marks a sharp increase from the $9 billion reported in November, underscoring the growing demand for AI-powered search tools.

Investor Interest and Funding Plans

The Nvidia-backed startup is exploring a funding round of between $500 million and $1 billion, the source added.

The increasing adoption of AI chatbots and agents capable of executing tasks for users has fueled investor interest in companies like Perplexity.

Founded as a challenger to traditional search engines, Perplexity provides AI-driven search capabilities similar to ChatGPT and Google’s Gemini. The company has garnered backing from high-profile investors, including Amazon founder Jeff Bezos and Japan’s SoftBank Group.

Competing in the AI Search Market

Perplexity has been actively enhancing its platform to compete with industry giants like Google and OpenAI.

In February, the company teased its upcoming AI-powered web browser, Comet, designed to go beyond simple search results by understanding complex queries, executing tasks, and making decisions.

Its Deep Research feature is another significant advancement, conducting extensive searches and analyzing multiple sources to generate comprehensive reports.

These innovations position Perplexity among the key players challenging Google’s dominance in the search market.

Challenges and Controversies

Despite its rapid rise, Perplexity has faced scrutiny from media organizations, including Forbes, Wired, and News Corp-owned outlets, which have accused the startup of plagiarism and content copying.

In response, the company has launched a publisher partnership program aimed at collaborating with news firms.

Meanwhile, Perplexity’s competitor OpenAI recently secured a $6.6 billion funding round, potentially valuing the company at $157 billion, solidifying its status as one of the world’s most valuable private tech firms.

Edited by Annette George