## 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.
Perplexity is raising at a $20 billion valuation
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
