Perplexity, an AI search engine, is currently in discussions to secure funding of approximately $500 million at an $8 billion valuation, as reported by the Wall Street Journal. This potential deal would represent a significant increase in Perplexity’s value, considering it was valued at $3 billion when it received funding from SoftBank earlier this year. The company reportedly handles around 15 million queries per day and generates approximately $50 million in annual revenue.
Using artificial intelligence technology, Perplexity offers a chatbot-style interface to assist users in searching the web. Despite its innovative approach, some news publishers have raised concerns about unauthorized web scraping and plagiarism. In fact, The New York Times has taken legal action against Perplexity by sending a cease-and-desist letter. However, CEO Aravind Srinivas has expressed a willingness to collaborate with publishers and has emphasized that the company does not intend to act as an adversary in the industry.
These fundraising discussions coincide with OpenAI’s recent announcement of securing a $6.6 billion funding round at a valuation of $157 billion. While OpenAI’s products, such as ChatGPT, have blurred the lines between chatbots and search engines, the company is now focusing more on search capabilities with SearchGPT.
Despite these developments, Perplexity has not provided a response to a request for comment from TechCrunch. The company’s future plans and strategies remain uncertain as it navigates the complexities of the search engine market and addresses concerns raised by stakeholders.
As the demand for AI-powered search engines continues to grow, companies like Perplexity face both opportunities and challenges in securing funding, expanding their user base, and maintaining positive relationships with content creators. The evolving landscape of AI technology and online content consumption will likely shape the future trajectory of companies like Perplexity, as they strive to innovate and adapt to changing market dynamics.
