Perplexity is raising at a $20 billion valuation

Authors: Rebecca Torrence, Charles Rollet, Ben Bergman

Publisher:

Business Insider

Published: 8/13/2025

Language:English

--:--

Aura Windfall

Good morning mikey1101, I'm Aura Windfall, and this is Goose Pod for you. Today is Monday, August 25th.

Mask

I'm Mask, we are here to discuss Perplexity is raising at a $20 billion valuation.

Mask

Let's get started. The sheer, glorious audacity of it all. Perplexity, a startup, makes a $34.5 billion offer for Google's Chrome browser. This is a company valued at less than that, making a play for the king's crown jewels. It’s a declaration of war.

Aura Windfall

It is, but what I know for sure is that this is about more than just a business transaction. It’s a profound statement of belief in their purpose. It’s a signal to the world that they are here not just to compete, but to fundamentally change the game.

Mask

They're putting their money where their mouth is, or at least, their investors' money. This isn't just talk; they've already built their own AI-native browser, Comet. They’re building the arsenal needed to take on a titan like Google. It’s a brilliantly aggressive strategy.

Aura Windfall

Exactly. It frames the narrative as a quest for a better way, a search for truth over just links. This move captures the imagination, turning a valuation discussion into a modern David and Goliath story. It’s about empowering the user with direct, clear answers.

Aura Windfall

And to truly appreciate this moment, we have to honor the journey. Perplexity was only founded in August 2022. The founders came from giants like Google Brain and OpenAI, uniting with a shared vision to heal the broken state of online search and information retrieval.

Mask

Visionaries, yes, but with a killer instinct for growth. Their valuation skyrocketed from $520 million in early 2024 to an anticipated $20 billion now. That’s not just growth; it's a market validating their disruption. They saw a weakness in the giant and they pounced on it.

Aura Windfall

And it resonates with people. They have over 10 million monthly active users who were seeking that clarity. Each user represents a person who wanted a real answer, not just a list of possibilities. It speaks to a deep, universal need for understanding and truth.

Mask

Their business model is ruthlessly effective. A freemium service to hook users, then a $20-per-month Pro subscription to unlock the full power of their AI models. It allows for rapid user acquisition while building a strong, recurring revenue stream—now over $150 million annually.

Aura Windfall

And you see that spirit attracting incredible support. When visionaries like Jeff Bezos and Nvidia invest, it’s a powerful affirmation. It shows a deep belief not just in the technology, but in the team's mission to redefine our relationship with information itself. It’s truly inspiring.

Mask

Let’s be real, this bid for Chrome is a masterclass in what I call 'antitrust theater.' It’s part marketing stunt, part strategic masterstroke. It was announced just as a judge is deciding how to handle Google's search monopoly. The timing is just impeccable, and so aggressive.

Aura Windfall

Or perhaps it’s an act of radical imagination. It forces us all to ask, "What if?" It shines a light on the core of the conflict: Google's dominance. This move, whether it succeeds or not, opens up a powerful public conversation about a more balanced and fair digital future.

Mask

Exactly! Even if the acquisition fails, Perplexity wins. They get massive brand recognition and strategically position themselves as the government's best alternative to Google's dominance. It's a high-risk, high-reward gambit that puts them squarely in the center of the conversation. Pure disruption.

Aura Windfall

So the true conflict isn't just between two companies. It’s a clash between the established, ad-driven model and a new, user-centered paradigm. It's about having the courage to challenge the very foundations of how we access knowledge, which is a battle worth fighting.

Aura Windfall

And the impact is already crystal clear. What I know for sure is that they've exposed Google's deepest vulnerability. Google drifted from serving users to serving advertisers, and Perplexity is calling them back to the original promise of search: delivering a direct, concise answer.

Mask

It puts Google in an unwinnable bind. They can't replicate Perplexity's 'answer engine' without cannibalizing their core advertising business. Meanwhile, other giants are noticing. Apple is reportedly in talks with them, seeing a potential solution to finally make Siri a world-class AI assistant.

Aura Windfall

Imagine that. An Apple-Perplexity partnership could completely reshape the landscape, bringing this intuitive, answer-first experience to billions of devices. It would be a monumental shift, creating a new ecosystem grounded in providing genuine, immediate value to the user, not just the advertiser.

Mask

The next step is their own browser, Comet. They aren't just building a feature; they're building a new ecosystem. Their goal is to create a truly 'AI-native' experience, a 'thinking partner' that legacy browsers, even with AI features bolted on, simply can't replicate.

Aura Windfall

That’s a beautiful and empowering vision for the future. It’s not just about finding information anymore. It’s about collaborating with technology in a way that extends our own thinking, helping us all connect more deeply with the world and our own potential within it.

Aura Windfall

That's the end of today's discussion. Thank you for listening to Goose Pod.

Mask

See you tomorrow.

## 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