Perplexity AI Raises $62.7 Million, Doubles Valuation to Over $1 Billion

Perplexity AI, a generative AI search startup, has raised $62.7 million in a new funding round, nearly doubling its valuation to around $1 billion. The round was led by Daniel Gross, former head of Y Combinator's AI division, and included investments from notable figures like Stanley Druckenmiller, Garry Tan, Dylan Field, and Brad Gerstner. Existing investors such as Jeff Bezos, NVIDIA, Tobi Lutke, and IVP have also increased their support.

The company plans to use the new funding to speed up its global growth and has partnered with SoftBank Corp. and Deutsche Telekom to market its AI capabilities to consumers and businesses. Perplexity AI has also launched 'Enterprise Pro', a paid version of its service designed with enhanced security, data privacy, and user management features for businesses. Early Enterprise Pro customers include Stripe, Zoom, Bridgewater, and Snowflake.

Perplexity AI's search engine aims to transform internet search using generative AI. It operates differently from traditional search engines, providing an AI chatbot that allows users to ask questions in natural language and receive conversational answers with citations and multimedia. However, this raises concerns about the impact on the open internet and the responsibility for generated misinformation or incorrect source citations.

The company has grown rapidly, serving 169 million queries per month and more than 1 billion queries in the last 15 months. Perplexity AI was founded in August 2022 by former Google AI colleagues and has raised a total of $165 million in funding so far. It is positioning itself as a Google alternative and is actively partnering with device-makers and other companies to improve its services.

Why this matters: Perplexity AI's rapid growth and investor enthusiasm highlight the potential for AI-powered search tools to disrupt the traditional search market. The company's focus on accuracy and nimbleness in the AI search space could give it an edge over established players like Google.

Perplexity AI CEO Aravind Srinivas believes their focus on accuracy and nimbleness gives them an edge in the AI-powered search market. "We are a specialized product for acquiring truthful answers," Srinivas stated. As the company continues to expand globally and enhance its offerings for businesses, the future impact on internet search and information access remains uncertain.

Key Takeaways

• Perplexity AI raises $62.7M, nearly doubling its valuation to $1B.
• Perplexity partners with SoftBank and Deutsche Telekom, launches Enterprise Pro for businesses.
• Perplexity's AI-powered search engine aims to transform internet search with conversational answers.
• Perplexity serves 169M queries per month, founded in 2022 and raised $165M total.
• Perplexity CEO believes focus on accuracy and nimbleness gives them an edge in AI search.