Perplexity AI Triples Valuation to $9B After 6 Months
Perplexity AI has reportedly closed a $500 million funding round, pushing its valuation to an impressive $9 billion. This marks a remarkable threefold increase in just 6 months, showcasing the rapid momentum within the artificial intelligence sector.
The latest funding round was led by Institutional Venture Partners (IVP). Earlier reports indicated that the deal was nearing completion in November. Perplexity, known for its AI-powered search engine, has gained traction among investors eager to back AI startups driving the next wave of innovation.
In June, SoftBank's investment had previously valued Perplexity at $3 billion. The startup’s swift valuation climb reflects the growing investor appetite for AI solutions, fueled by broader industry excitement.
Perplexity is not alone. This year has seen a surge in AI startup valuations as venture capitalists and institutional investors pour billions into the space. Anthropic, the developer of the Claude AI model, secured a $4 billion investment from Amazon in November. Around the same time, Elon Musk’s AI venture, xAI, raised $5 billion, pushing its valuation to $50 billion.
Meanwhile, OpenAI, the leader behind ChatGPT, continues to dominate the market after raising $6.6 billion at a record-setting $157 billion valuation in October.
However, these massive investments come alongside legal and ethical controversies. Perplexity is currently facing a lawsuit from News Corp, which accuses the startup of copyright infringement for allegedly using content from The Wall Street Journal and New York Post without authorization. Similarly, OpenAI is battling legal action from The New York Times, which claims its articles were used to train the ChatGPT model.
Both Perplexity and OpenAI have denied the allegations.
Despite these challenges, investor enthusiasm for AI-driven businesses remains strong, with startups like Perplexity AI leading the charge in redefining search and information discovery in the digital age.
