Perplexity AI Targets $20 Billion Valuation in Latest Funding Round
Perplexity AI is seeking a fresh Perplexity AI funding round at a $20 billion post-money valuation, according to an
Perplexity AI is seeking a fresh Perplexity AI funding round at a $20 billion post-money valuation, according to an email sent to prospective investors and sources with knowledge of the raise.
The Perplexity investment round represents a $2 billion increase from Perplexity’s most recent valuation of $18 billion in its latest fundraising round in July, as first reported by Bloomberg last month. This marks a dramatic rise from a $520 million valuation in January 2024.
Chrome Browser Acquisition Bid Captures Headlines
The AI search engine made headlines this week with its $34.5 billion bid for Google’s Chrome browser. This bold move has positioned Perplexity prominently in the Perplexity AI funding landscape, though many have dismissed the bid as little more than a marketing stunt.
“It makes them seem like a big player and helps them with fundraising, talent, and user attention by staying in the news cycle,” said one venture capital executive who is not an investor in Perplexity.
Google hasn’t signalled any intent to sell the browser, despite facing pressure from the Department of Justice to divest Chrome over antitrust concerns.
Revenue Growth Drives Investor Interest
Perplexity’s pursuit of additional Perplexity investment round comes alongside impressive business growth. The startup boosted its annual recurring revenue above $150 million by the middle of 2025, more than quadruple its roughly $35 million in ARR a year ago, according to the investor email.
Jesse Dwyer, Perplexity’s head of communications, confirmed the company is currently doing more than $150 million in ARR but didn’t answer further questions about the funding round.
The company launched in 2022 to combine large-language models with web searches to provide real-time answers to user questions. It has become one of AI’s hottest startups with funding from investors including SoftBank, Nvidia, and Jeff Bezos.
Intense Competition in AI Search Market
The additional Perplexity AI funding round comes as Perplexity faces fierce competition from Big Tech giants like Google and AI leaders like OpenAI, which is reportedly working on its own web browser. The startup announced its own AI-native browser Comet last month.
Perplexity has also contended with analysts urging Apple to buy the company for months. Dan Ives, managing director and equity research analyst at Wedbush Securities, said acquiring Perplexity should be a “no-brainer deal” for Apple, telling Business Insider that “for Apple, time is ticking.”
However, Dwyer said the team was “unaware of any M&A discussions that involve Perplexity.”
Funding Details Remain Undisclosed
It’s not clear who’s set to lead the latest Perplexity investment round. Perplexity has raised about $1.5 billion to date, according to PitchBook.
The company told The Wall Street Journal it has received commitments from several investors, including large venture capital funds, to fund the Chrome transaction, though it didn’t disclose the names of those investors.
The $20 billion valuation Perplexity is seeking, while a meaningful lift for the company, still doesn’t come close to the $34.5 billion it offered this week to buy Chrome from Google.
Source: Business Insider
