Perplexity, an AI-driven search company that provides conversational responses to questions and positions itself as a competitor to Google, has landed $200 million in fresh funding at a $20 billion valuation, according to The Information. This latest investment comes only two months after the firm secured $100 million at an $18 billion valuation, as reported by Bloomberg in July.
PitchBook records show that in the three years since its inception, this fast-expanding AI startup has brought in $1.5 billion in total investment. The primary investor in Perplexity’s newest funding round has not been identified. Bloomberg previously noted that the July investment was an extension of an earlier $500 million round, completed at a $14 billion valuation and led by Accel.
A source familiar with the matter revealed that Perplexity’s annual recurring revenue (ARR) is nearing $200 million. Last month, the company’s communications lead told Business Insider that their ARR had already exceeded $150 million.
Perplexity did not immediately provide a comment when contacted.
This influx of capital arrives as Perplexity seeks to establish itself as a serious rival to Google’s dominance in search. In August, Perplexity made a $34.5 billion offer to acquire Google’s Chrome browser. This proposal followed the Justice Department's suggestion that Google should divest its browser business due to antitrust concerns. However, a federal judge ruled earlier this month that Google is not required to separate its search arm, allowing the tech giant to retain Chrome.
