California-based search startup Perplexity is currently raising $500 million in a funding round led by Institutional Venture Partners (IVP), which also has a seat on the startup’s board. This investment, according to sources familiar with the matter, values Perplexity at approximately $9 billion, reflecting the strong investor interest in AI-driven ventures.

Earlier this year, Perplexity secured $73.6 million in a Series B round, which IVP also led, bringing the company’s valuation to around $520 million at the time. With advancements in large language models and generative AI, startups like Perplexity are drawing significant attention from investors eager to capitalize on the technology’s growth potential. OpenAI’s recent funding success, which raised $6.6 billion and set its valuation near $157 billion, is a testament to the scale of investment AI companies now require.

Perplexity’s core offering, an AI-powered search tool that scours the internet and generates summary responses, has faced challenges from major media companies concerned with copyright infringement. In October, News Corp filed a lawsuit against Perplexity, alleging “massive amounts of illegal copying” of its content. The New York Times also sent a cease-and-desist letter last month, urging the startup to stop using its content for AI training purposes.

Supported by prominent backers like Jeff Bezos and Nvidia, Perplexity aims to carve out a strong presence in the search engine market, traditionally dominated by Alphabet’s Google. The Wall Street Journal initially reported Perplexity’s latest funding efforts.