Perplexity, an AI-driven search startup, is set to raise $500 million, bringing its valuation to $9 billion. The funding round is led by Institutional Venture Partners (IVP).
The company previously raised $73.6 million in Series B funding in January, when it was valued at around $520 million, Reuters news report said.
The success of OpenAI’s ChatGPT has sparked significant investor interest in AI startups. Large language model (LLM) development requires substantial funding, leading to rapid growth in AI investments.
Perplexity faces legal scrutiny, with News Corp publishers suing it in October for alleged copyright infringement, claiming it engages in widespread “illegal copying” of their content. The New York Times also sent a cease-and-desist notice last month over content use.
Perplexity is backed by high-profile investors, including Jeff Bezos and Nvidia.
The startup aims to disrupt the search engine market, challenging the dominance of Google with its AI-driven search approach.
