Watch Out Google, OpenAI: Perplexity AI Reportedly Raising Additional Money At Significantly Higher Valuation Cap Than $520M
Perplexity AI, a rising star in the field of artificial intelligence, is reportedly in discussions to secure additional funding at a valuation significantly higher than its previous round.
What Happened: The AI startup, which has been making waves in Silicon Valley, is in the process of raising new funds. Investors are showing keen interest in supporting Perplexity’s efforts to compete with industry giants like ChatGPT-parent OpenAI and Alphabet Inc.’s Google.
The new valuation cap is notably higher than the $520 million Perplexity secured in January, reported Business Insider, citing two people with direct knowledge of the matter. In January, the company secured $74 million in funding in a round spearheaded by Institutional Venture Partners.
As per the report, Perplexity’s latest funding round, which is still in the negotiation phase, is expected to be structured as convertible securities, known as simple agreements for future equity or SAFE notes.
This type of security allows venture capitalists to purchase a startup’s shares at a fixed price in the future, in exchange for providing funding at present.
Despite the ongoing discussions, the details of the deal are yet to be finalized, and the figures involved are subject to change. Perplexity did not immediately respond to Benzinga’s request for comments.
Why It Matters: Perplexity AI, founded in 2022, has quickly gained traction in the AI-powered consumer apps market. The company, which is backed by investors like Jeff Bezos, has been praised for its effectiveness by industry leaders like Paytm founder Vijay Shekhar Sharma.
