Perplexity is an AI-powered search startup that competes with Google by providing conversational answers to user queries, securing a new capital of $20 billion at a $20 billion valuation. According to a July report from Bloomberg, the new funding comes just two months after the company raised $100 million at a $18 billion valuation.
According to data from Pitchbook, the rapidly growing AI company since its founding three years ago has raised $1.5 billion in total funding. It is unclear who led Perplexity’s latest capital injection. Bloomberg reported that the funding in July is an extension of the previous $500 million round that was completed earlier this year, with Accel being led by valuation of $14 billion.
According to a company-savvy source, Perplexity’s annual repeat revenue (ARR) is approaching $200 million. Last month, Perplexity’s communications director told Business Insider that the company’s ARR was over $150 million.
Confusion did not immediately respond to requests for comment.
This funding stands as a confusion as a challenger to Google’s search advantage. In August, Prperxity offered to buy Google’s Chrome browser for $34.5 billion. The offer came after the Justice Department, claiming that Google was acting anti-competitively, suggesting that the company sells web browsers. But earlier this month a federal judge determined that Google would effectively allow search giants to keep Chrome without the need to break up its search business.
