AI-powered search startup Perplexity has secured $200 million in a new funding round, though the lead investor remains undisclosed. This new capital injection elevates the company's valuation to $20 billion. The deal follows a rapid succession of fundraising for the AI company.
This round comes just two months after Perplexity raised $100 million at an $18 billion valuation. Earlier this year, the company also completed a $500 million financing round led by Accel at a $14 billion valuation. Consequently, the three-year-old startup has now raised $1.5 billion in total venture capital funding.
Fueling Competition with Search Giants
Perplexity positions itself as a direct challenger to established search engines like Google and Microsoft Bing. The company provides conversational, AI-driven answers to user queries, moving away from the traditional list of links. This funding further equips Perplexity to compete in the evolving search market.
The company’s annual recurring revenue is now approaching $200 million.
This growth follows a recent, unsuccessful $34.5 billion offer to acquire Google's Chrome browser. The bid emerged after a Justice Department proposal suggested Google divest the browser. However, a federal judge ultimately ruled against a forced breakup of Google's search business.