Perplexity in Talks to Raise $1B at $18B Valuation as AI Search Market Intensifies

AI-powered search innovator Perplexity is reportedly in discussions to raise up to $1 billion in new funding, potentially doubling its valuation to $18 billion, according to sources cited by Bloomberg. The company’s annual recurring revenue has reached $100 million, signaling rapid growth amid heightened competition in the AI search space.

Perplexity’s valuation has skyrocketed from $1 billion in April 2024 to $9 billion in December, reflecting investor confidence in its generative AI capabilities. As Google and Anthropic expand into AI-driven search, Perplexity is diversifying with new enterprise tools and an “agentic” browser called Comet, aimed at redefining how users interact with information online.