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Perplexity AI is raising US$500 million in a new funding round that would value the company at an impressive US$9 billion. Fresh capital influx shows a boost in investor confidence in the AI sector. The new round is led by Institutional Venture Partners. The institutional venture capital firm had previously backed the company and sits on its board as well.
Perplexity raised US$73.6 million in Series B funding way back in January at a US$520 million valuation. Reaching US$9 billion will be a huge hike. It speaks volumes to investor interest in AI firms especially those that build upon large language models or other generative AI-related technologies.
Perplexity AI is a Generative AI, powered by advanced cutting-edge AI technologies that gives users super-fast and highly accurate internet information with data sources.
In a stride to dethrone the search engine leader Google and its dominance of the sector, Perplexity employs AI-driven innovative search characteristics. Thus, making a difference both in the life of a typical user and providing efficient solutions at the business end.
The AI startup is backed by many influential figures in the tech world, including Amazon founder Jeff Bezos and AI chip giant Nvidia. This further solidifies Perplexity's stand in the AI market.
Perplexity AI may have advanced and developed more technologically, but it faced legal issues. News Corp and The New York Times sued Perplexity in October 2024, claiming it made illegal copies of copyrighted materials. Legal disputes reflect deepening anxieties about using publicly available data for the development of AI models as well as their implications in copyright and intellectual property.
The fresh capital will have Perplexity to further extend its AI search and Generative AI capabilities. Continued venture capital interests may position the company more strongly as a key player in the future AI landscape over tech giants like Google.
