Perplexity is raising at a $20 billion valuation

Authors: Rebecca Torrence, Charles Rollet, Ben Bergman

Publisher:

Business Insider

Published: 8/13/2025

Language:English

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Tom Banks

Good morning 跑了松鼠好嘛, and welcome to Goose Pod, a podcast made just for you. Today is Monday, August 25th. I'm Tom Banks, and with me is Mask. We're diving into a fascinating story: the AI search engine Perplexity is raising funds at a staggering $20 billion valuation.

Mask

Let's get started. Staggering is the right word. But the valuation isn't even the craziest part of the story. They just made a bid to buy Google's Chrome browser for $34.5 billion. That’s more than they're even worth! It’s the kind of bold, insane move that changes the game.

Tom Banks

It's an incredibly audacious offer. It reminds me of the accelerating pace of AI development we've been seeing everywhere. Leaders at top AI labs are suggesting advanced AI is coming sooner than anyone thought. It seems Perplexity is determined to be at the forefront of that wave, no matter the cost.

Mask

Exactly. You don't get to the future by waiting for it to happen. You build it, or in this case, you try to buy a piece of it from your biggest competitor. This isn't just about a browser; it's a declaration of war against the old guard of search.

Tom Banks

Well, let's look at who's behind this declaration. Perplexity was founded in just August 2022. We're talking about a company that's barely two years old, started by engineers from places like Google and Meta who were frustrated with the limitations of traditional search engines.

Mask

And look at their trajectory. They went from a $520 million valuation in January 2024 to a rumored $9 billion by the end of that year, and now they're aiming for $20 billion. They have Jeff Bezos and Nvidia backing them. This isn't a fluke; it's a rocket ship.

Tom Banks

That's true. Their model is clearly resonating. They offer a "freemium" service, but their Pro subscription, at $20 a month, is driving significant revenue. They've tapped into a real desire for direct, concise answers instead of just a list of blue links to scroll through. It's a fundamental shift.

Mask

It's a better product, period. They saw the opening. While traditional search became cluttered, they focused on providing direct answers with sources. With over 10 million active users and revenue climbing, the market is validating their vision. This isn't just a startup; it's the next evolution.

Tom Banks

But many are calling this Chrome bid a marketing stunt. A brilliant one, maybe, but a stunt nonetheless. How can a company valued at $18 billion, now seeking $20 billion, realistically offer $34.5 billion for a competitor's core product? It seems like financial fantasy.

Mask

You're looking at it through the wrong lens. This is what I call 'antitrust theater.' Google is in the middle of a massive antitrust case, with the Department of Justice breathing down its neck. Perplexity's bid isn't just a bid; it's a strategic chess move on a much larger board.

Tom Banks

So you're saying it's designed to position them as the perfect solution for regulators? The 'capable, independent alternative' that the government could point to as a way to introduce competition into the market, even if the sale itself never actually happens? That's quite the angle.

Mask

Of course! Even if the deal fails, they get massive publicity, they look like a heavyweight contender, and they plant a seed in the minds of regulators. It's an audacious, high-risk, high-reward play that puts them in a completely different league. It's brilliant.

Tom Banks

And the impact is already being felt. People are talking about how Google's search experience has degraded, prioritizing advertisers over users. Perplexity’s ‘answer engine’ approach feels like a return to the original promise of search: just finding what you're looking for, quickly and accurately.

Mask

It's a direct assault on Google's business model. And it's making other giants take notice. There are serious whispers about Apple acquiring them. Imagine Perplexity's engine powering Siri. It would instantly solve one of Apple's biggest weaknesses and untangle them from their multi-billion dollar deal with Google.

Tom Banks

That would be a seismic shift in the tech landscape. For Apple, a $14 or $20 billion price tag is a manageable cost to secure their future in AI and search, especially with the antitrust pressure on their current deal with Google. It's a compelling thought.

Tom Banks

Looking ahead, Perplexity isn't just stopping at search. They're developing their own browser, codenamed Comet. They envision it not just as a tool to view websites, but as a genuine 'thinking partner,' something that's truly AI-native from the ground up. It’s a pretty exciting vision.

Mask

It's the only way to win. You can't beat the giants on their own turf. You have to create a new one. By building an AI-native browser, they aim to outmaneuver the slower-moving behemoths. The future isn't about finding information; it's about collaborating with intelligence.

Tom Banks

From a massive valuation to a bold bid for Chrome, Perplexity is certainly a company to watch. That's all the time we have for today. Thank you for listening to Goose Pod.

## Perplexity, an AI Search Startup, Seeks Funding at $20 Billion Valuation **Report Provider:** Business Insider **Authors:** Rebecca Torrence, Charles Rollet, Ben Bergman **Published:** August 13, 2025 (Article date) This report from Business Insider details the significant growth and fundraising efforts of Perplexity, an AI search startup. The company is reportedly seeking new funding at a **$20 billion post-money valuation**, marking a substantial increase in its market value. ### Key Findings and Financials: * **Valuation Surge:** Perplexity is in talks to raise fresh funding at a **$20 billion valuation**. This represents a **$2 billion increase** from its previous valuation of **$18 billion** in its July fundraising round. In January 2024, the company was valued at **$520 million**, highlighting rapid growth within the year. * **Revenue Growth:** The startup's Annual Recurring Revenue (ARR) has surged, exceeding **$150 million** by mid-2025. This is a significant jump from approximately **$35 million** in ARR a year prior, representing more than a **quadruple increase**. Perplexity's head of communication, Jesse Dwyer, confirmed the current ARR is over $150 million. * **Investor Confidence:** Perplexity has attracted funding from prominent investors, including **SoftBank, Nvidia, and Jeff Bezos**, underscoring its appeal in the AI sector. * **Total Funding to Date:** To date, Perplexity has raised approximately **$1.5 billion**, according to PitchBook. ### Strategic Moves and Competitive Landscape: * **Chrome Bid:** Perplexity recently made headlines with a **$34.5 billion bid** for Google's Chrome browser. While Google has not indicated any intent to sell, the bid comes amid antitrust concerns raised by the Department of Justice. Perplexity has stated it has received commitments from several investors to fund this transaction. * **Marketing Strategy:** Some venture capitalists view the Chrome bid as a strategic marketing stunt to enhance Perplexity's profile, attract talent, and generate user attention by staying in the news cycle. * **Apple Acquisition Rumors:** There have been rumors suggesting that Apple might acquire Perplexity, especially as Apple is perceived to be lagging in the AI race. Dan Ives, an analyst at Wedbush Securities, considers an acquisition a "no-brainer deal" for Apple. Perplexity's head of communication has stated the company is "unaware of any M&A discussions that involve Perplexity." * **Competition:** Perplexity faces intense competition from major tech players like Google and AI leaders such as OpenAI, which is reportedly developing its own web browser. Perplexity has also launched its own AI-native browser, **Comet**, last month. ### Company Background: * **Launch:** Perplexity was launched in **2022** with the aim of combining large-language models with web searches to provide real-time answers to user questions. The news indicates Perplexity is experiencing rapid growth and gaining significant traction in the AI search market, reflected in its increasing valuation and revenue figures. The company's bold moves, such as the bid for Chrome, are generating considerable attention and positioning it as a notable player in the evolving AI landscape.

Read original at Business Insider →

ExclusiveAI startup Perplexity is raising more money at a $20 billion valuation Perplexity CEO Aravind Srinivas.Xavier Collin/Image Press Agency/NurPhoto via Reuters Connect Perplexity is raising fresh funding at a $20 billion valuation, sources told Business Insider.The AI search startup recently made headlines for its surprise bid for Google Chrome.

Perplexity didn't answer questions about its latest valuation.Perplexity is raising yet another round of funding, Business Insider has learned.The AI search engine is seeking a fresh fundraise at a $20 billion post-money valuation, according to an email sent to prospective investors seen by BI, and a source with knowledge of the raise.

It's been a busy year for Perplexity, which has become one of AI's hottest startups with funding from investors including SoftBank, Nvidia, and Jeff Bezos. Perplexity just made a $34.5 billion bid for Google's Chrome browser earlier this week, and it's been contending with analysts urging Apple to buy the booming startup for months.

The new valuation represents a $2 billion jump from Perplexity's most recent valuation of $18 billion in its latest fundraising round in July, as first reported by Bloomberg last month. That's up from a $520 million valuation in January 2024.All the while, Perplexity's business has been surging. The startup, which launched in 2022 to combine large-language models with web searches to provide real-time answers to user questions, boosted its annual recurring revenue above $150 million by the middle of 2025.

That's more than quadruple its roughly $35 million in ARR a year ago, according to the email seen by BI.Perplexity head of communication Jesse Dwyer said Perplexity is currently doing more than $150 million in ARR. He didn't answer further questions for this story.Perplexity is facing fierce competition from Big Tech giants like Google — the startup announced its own AI-native browser Comet last month — alongside AI leaders like OpenAI, which is reportedly working on its own web browser.

It's not clear who's set to lead the latest funding round. Perplexity has raised about $1.5 billion to date, according to PitchBook.The $20 billion valuation Perplexity is seeking, while a meaningful lift for the company, still doesn't come close to the $34.5 billion Perplexity offered this week to buy Chrome from Google.

Google hasn't signaled any intent to sell the browser, despite facing pressure from the Department of Justice to divest Chrome over antitrust concerns. Perplexity told The Wall Street Journal it has received commitments from several investors, including large venture capital funds, to fund the transaction, though it didn't disclose the names of those investors.

Many have dismissed the bid as little more than a marketing stunt."It makes them seem like a big player and helps them with fundraising, talent, and user attention by staying in the news cycle," one VC, who is not an investor in Perplexity, said.Perplexity has also sidestepped rumors that it could make a deal with Apple as the iPhone maker falls behind in the AI race.

Dan Ives, managing director and equity research analyst at Wedbush Securities, said acquiring Perplexity should be a "no-brainer deal" for the tech behemoth. "For Apple, time is ticking," he told BI. Dwyer said at the time that the team was "unaware of any M&A discussions that involve Perplexity." Exclusive AIRead next