Perplexity seeks $500 million to boost valuation to $8 billion
- Perplexity, a San Francisco-based AI startup, is aiming for a valuation of $8 billion as it seeks to raise approximately $500 million in its latest funding round.
- Founded two years ago, the company has rapidly increased its annualized revenue to around $50 million, up from $10 million earlier this year.
- The company's aggressive growth strategy includes plans to disrupt Google's dominance in the digital advertising industry.
Perplexity, an artificial intelligence startup headquartered in San Francisco, is currently in negotiations to significantly raise its valuation to $8 billion, a substantial jump from its previous assessment of $3 billion. This move comes as the company looks to secure approximately $500 million in its fourth funding round, which is seen as a litmus test for investor interest in AI startups experiencing rapid growth. Established just two years ago, Perplexity has managed to triple its valuation in a relatively short time while also increasing its annualized revenue dramatically from $10 million in March to approximately $50 million now. This rapid development indicates a strong momentum that could further attract investors. In addition to its financial growth, Perplexity is seeking to challenge Google's established dominance in the digital advertising space. The company has reportedly initiated discussions with major brands like Nike and Marriott, aiming to develop a sponsored question system that could disrupt Google’s auction-based advertising model. Despite its success, Perplexity has drawn criticism, particularly from web publishers, for allegedly using their content without permission. Such issues highlight the challenges the company may face as it navigates the highly competitive AI and advertising landscape.