The tech world is buzzing: the ambitious startup Perplexity AI, which has challenged traditional search engines with its conversational AI search, is reportedly in the final stages of negotiations to raise a staggering $500 million in investment, according to reports on May 13, 2025. This deal, according to authoritative publications such as The Wall Street Journal and CNBC, could elevate the companys valuation to an incredible $14 billion. The renowned venture capital firm Accel is reportedly leading this round.
This potential financial breakthrough is not just another figure in reports. Its a powerful signal that investors continue to pour money with immense enthusiasm into companies developing cutting-edge generative AI solutions, especially those capable of disrupting established markets. Founded in 2022, Perplexity AI quickly gained popularity by offering users not just a list of links in response to a query, but structured, well-argued answers with cited sources, bringing search closer to a natural dialogue. This approach directly competes with Googles models and AI assistants like OpenAIs ChatGPT.
The surge in Perplexity AIs valuation is truly impressive: in early 2024, the company was valued much more modestly, but product development successes, user base growth, and strategic moves have led to a rapid increase in its estimated worth (e.g., in December 2024, the valuation reached $9 billion, up from $3 billion in June 2024). Perplexity AIs annual recurring revenue (ARR) is reportedly approaching $100 million, which nevertheless signifies an extremely high valuation-to-revenue multiple, underscoring investors belief in future exponential growth. Previous investors in the startup include giants like Nvidia, Softbank, as well as well-known funds IVP, New Enterprise Associates, and Bessemer Venture Partners.
The raised funds will likely be directed towards further improving core AI models, expanding the development team, scaling infrastructure, and aggressive marketing. Perplexity AI makes no secret of its ambitions: the company plans to launch its own web browser called "Comet," which is expected to include "agentic" search features, potentially further transforming user interaction with online information. Furthermore, potential integrations of Perplexity AIs search technologies into mobile platforms are actively being discussed, including possible negotiations with Apple for use in the Safari browser, and an already confirmed partnership with Motorola to preload the assistant on their devices.
This funding round for Perplexity AI could catalyze a new wave of innovation in AI search and seriously intensify competition for Google, forcing the search giant to develop its own AI solutions even more actively. The world is closely watching how this bold startup will use the acquired resources to realize its mission – to make information search more intuitive, accurate, and conversational.