Perplexity Raises $200M at $20B Valuation

Perplexity, an AI-powered search startup founded in 2022 by former OpenAI and Google engineers, has secured $200 million in new funding at a $20 billion valuation, marking a rapid rise from an $18 billion valuation just two months prior. The company, which has raised over $1.5 billion to date, is positioning itself as a challenger to Google's dominance by offering conversational, ad-free search results through a subscription model. Perplexity's annual recurring revenue is approaching $200 million, fueled by strong user growth and recent acquisitions such as browser firm Sidekick and software developer Carbon. In a bold move to expand its influence, Perplexity made an unsolicited $34.5 billion offer to buy Google's Chrome browser following a DOJ proposal for Google to divest it, although a federal judge recently ruled Google will keep Chrome. The startup's innovative approach, combining conversational AI and real-time web sourcing, has attracted investment from notable backers including Nvidia, Jeff Bezos, and SoftBank. Despite its success, Perplexity faces challenges such as accusations of content scraping, but the recent funding round underscores strong investor confidence and the company's ambition to reshape internet search and browsing experiences.