Perplexity AI is racing ahead in the search engine wars, closing in on a $500 million funding round that pushes its valuation to a stunning $14 billion. This marks a massive leap from its $9 billion milestone just six months ago, showcasing the kind of investor excitement rarely seen in AI startups this early.
According to insiders cited by the Wall Street Journal, VC heavyweight Accel is leading the new round. The momentum builds on Perplexity’s previous $500 million raise in December 2024, led by IVP. Just a year before that, in early 2024, the company was valued at $520 million after securing $73.6 million from a star-studded lineup including NVIDIA, Jeff Bezos, and Elad Gil.
A New Kind of Search Experience
Founded in 2022 by former engineers from Google and OpenAI, Perplexity AI is reimagining how people search for information. Instead of presenting pages of blue links like traditional engines, Perplexity responds with concise, conversational answers—always citing its sources. This user-first, transparency-focused design is a key reason it’s gaining ground so quickly.
Today, over 15 million users rely on Perplexity monthly, and the company’s $20-per-month premium tier is starting to drive meaningful revenue. It’s not just hype. People are signing up—and staying.
With the Perplexity AI valuation climbing rapidly, some investors have gone as far as making unsolicited bids valuing the startup at up to $15 billion. But the company, for now, appears focused on its roadmap rather than chasing a higher sticker price.
Friction with Publishers
That success, however, hasn’t come without criticism. Perplexity has been accused by several media organizations—including The New York Times, Forbes, and Wired—of scraping content without permission. In response to a cease-and-desist letter from the Times, the company reiterated its commitment to responsible AI practices and pointed to its use of visible citations.
To ease tensions, Perplexity recently rolled out a revenue-sharing model. This new system compensates content publishers anytime their work contributes to Perplexity responses that generate ad revenue. It’s an early attempt to bridge the gap between AI platforms and media creators—and could set a precedent across the industry.
Rivals Are Heating Up
The surge in Perplexity AI valuation comes as the broader AI search race gets more intense. Google is doubling down on its Gemini project, while OpenAI has added real-time search features to ChatGPT, offering live sports updates, news, and market data via integrated web partnerships.
Yet, despite the deep pockets of these tech giants, Perplexity’s agile product development, fast-growing user base, and strong investor backing make it a standout. Its success may hint at a shift in how people prefer to interact with the web—opting for direct, conversational answers over endless link-hopping.
In the evolving landscape of AI-powered search, Perplexity isn’t just keeping up. It’s setting the pace.
