Perplexity, an AI-powered search engine, is on track to raise $500 million in its fourth funding round this year, according to The Wall Street Journal. This would bring the startup’s valuation to nearly $9 billion, a significant increase from just a few months ago. The platform, which allows users to search the web using a ChatGPT-style interface, handles around 100 million queries per week and generates approximately $50 million in annual revenue.
The rapid growth of Perplexity reflects the strong interest from investors in its services, positioning it as one of the most valuable AI startups in the current landscape of generative AI technology. Key investors supporting Perplexity include notable names like Nvidia, Databricks, Jeff Bezos from Amazon, and executives from Y Combinator and Figma.
Founded in 2022 by Aravind Srinivas, an Indian American with a background in research roles at leading tech companies like OpenAI and Google, Perplexity aims to be the leading knowledge-centric company globally. One of its distinguishing features is the use of multiple large language models to provide more accurate and comprehensive responses compared to other AI search engines in the market.
Despite its success, Perplexity has recently faced legal challenges from News Corp-owned publications like The New York Post and The Wall Street Journal’s parent company, Dow Jones. These publishers have filed copyright infringement lawsuits against the AI startup, alleging that it scrapes web data, including their original reporting, to generate answers for user queries. In response to the lawsuits, Srinivas expressed surprise and a willingness to engage in commercial discussions with the publishers to address their concerns.
During a WSJ Tech Live event, Srinivas proposed revenue-sharing partnerships with news publishers and revealed plans to launch an advertising program in November. He emphasized the importance of open dialogue and collaboration with publishers, suggesting that licensing content alone may not be the most effective solution to the current challenges faced by AI platforms like Perplexity.
As Perplexity navigates these legal hurdles and explores new revenue opportunities, the startup continues to attract attention for its innovative approach to AI-powered search technology. With its growing user base and commitment to delivering accurate and rich responses, Perplexity remains a key player in the competitive landscape of generative AI platforms.
