AI-powered search firm Perplexity has reportedly secured an additional $200 million in new capital, pushing its valuation to $20 billion, according to a report by The Information. This latest funding round underscores a period of intensified investment for the company, which directly challenges incumbent players in the search market with its conversational AI capabilities.
The reported capital infusion arrives approximately two months after Perplexity previously raised $100 million at an $18 billion valuation, as detailed by Bloomberg in July. Since its establishment three years ago, the company has accumulated a total of $1.5 billion in funding, according to PitchBook data. The July financing was identified as an extension of a prior $500 million round completed earlier this year at a $14 billion valuation, a deal that was led by Accel. Information regarding the lead investor for the most recent $200 million injection was not immediately available.
Perplexity's annual recurring revenue (ARR) is approaching $200 million, a source familiar with the company stated. This reported figure follows a previous announcement last month to Business Insider by Perplexity's head of communication, indicating the company's ARR exceeded $150 million. The firm explicitly positions itself as a challenger to Google's longstanding dominance in the digital search sector, leveraging its AI-driven approach to user queries.
The company's competitive stance was further highlighted in August when Perplexity reportedly offered $34.5 billion to acquire Google's Chrome browser. This proposition emerged after the U.S. Department of Justice proposed that Google divest its web browser as part of an ongoing antitrust challenge. However, a federal judge ruled earlier this month that Google is not required to break up its core search business, thereby allowing it to retain ownership of Chrome. Perplexity did not immediately respond to a request for comment regarding the latest funding developments.
