Perplexity AI is in advanced talks to raise $500 million in a funding round that would value the artificial intelligence startup at $14 billion, according to a Wall Street Journal report.
The valuation marks a sharp increase from the $9 billion the company was reportedly worth just six months ago.
Founded in 2022, Perplexity has positioned itself as an "answer engine" that delivers direct, cited responses to user queries, distinguishing itself from traditional search platforms that return a list of links. The company has seen rapid adoption, particularly among professionals and developers looking for reliable and efficient information retrieval.
The startup’s annual recurring revenue has reached $100 million, Bloomberg reported separately.
Perplexity’s product suite includes the recently announced “agentic” browser called Comet, designed to create a more personalized and efficient search experience by integrating generative AI to perform tasks on behalf of users.
The company has attracted backing from notable venture capital firms including IVP, NEA, and Jeff Bezos’ investment fund, Bezos Expeditions. Earlier investors also include Nvidia and the venture arms of tech giants such as Databricks and Bessemer Venture Partners.