Artificial intelligence (AI) startup Perplexity AI’s valuation soared to $18 billion in its latest funding round as investors rushed to capitalize on the AI boom. The startup raised $100 million in the round, according to the Financial Times, which cited people familiar with the matter.
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The company’s valuation has surged rapidly, climbing from $500 million in early 2024 to $14 billion in May 2025, and now to $18 billion. Perplexity is already backed by chip giant Nvidia (NVDA), Softbank (SFTBY), Amazon (AMZN) founder Jeff Bezos, and several other renowned venture capitalists.
Here’s Why Perplexity AI Is Valued at Billions
According to the report, Perplexity initially sought an $18 billion valuation during the funding round in May, but faced investor opposition. Interestingly, soon after the round closed, new investors approached the startup, and Perplexity leveraged the situation by insisting on nothing less than an $18 billion valuation. The company’s rising popularity suggests that it could become a takeover target. However, CEO Aravind Srinivas has different plans for the startup and aims to take it public in the future.
Perplexity is proving to be a formidable competitor to fellow AI startups OpenAI (ChatGPT) and Anthropic (Claude). At the same time, the company is aiming to challenge Alphabet (GOOGL) Google’s dominance in the internet search space by launching its own AI web browser, Comet. The browser distinguishes itself from rivals by offering features such as summarizing content, automating tasks, managing emails and calendar events, and even executing tasks like booking appointments, all through its built-in AI assistant.
Perplexity’s revenues are also surging alongside its valuation. Its annualized revenue has jumped from $35 million last August to $150 million this month. As of April, the startup reported about 35 million users and earns the majority of its revenue from subscribers paying between $20 and $200 per month. Additionally, Perplexity generates revenue from advertising subscriptions and e-commerce.
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