AI-powered search startup Perplexity is reportedly in early discussions to raise up to $1 billion in a new funding round that would double its valuation to $18 billion. Bloomberg, citing a source familiar with the matter, reported that the company’s annual recurring revenue has now reached $100 million, highlighting its rapid growth.
Perplexity’s valuation has surged in recent years, jumping from $1 billion in April 2024 to $9 billion by December. If the new funding round proceeds, it would mark another significant milestone for the company as it continues to expand its influence in the AI-powered search industry.
The potential fundraising comes as competition in AI search intensifies. On Thursday, Anthropic introduced web search capabilities to its AI chatbot, Claude. Meanwhile, earlier in March, Google launched a test version of its chat-based AI search engine, AI Mode, for a select group of users. As more companies enter the AI search market, Perplexity appears to be broadening its focus beyond traditional search services.
The startup has been working on expanding its product offerings, recently teasing the launch of Comet, an “agentic” browser designed to enhance web interactions. Additionally, Perplexity has been strengthening its enterprise solutions by rolling out an AI-powered search engine aimed at helping businesses access internal documents more efficiently.
While the company has not officially confirmed the fundraising reports, the potential investment underscores the growing demand for AI-driven search tools. As Perplexity competes with major players like Google and Anthropic, securing additional funding could support its expansion efforts and help it maintain a competitive edge in the evolving AI landscape.
