Summary:
Perplexity AI hits $18bn valuation, up from $14bn just two months prior
Raised capital five times in 18 months, showcasing rapid growth
Launched Comet, an AI browser for premium users, challenging Google's search dominance
Revenue jumps from $35mn to $150mn annually, diversifying into ads and ecommerce
Backed by Nvidia, SoftBank, Jeff Bezos, and Yann LeCun, but faces competition from OpenAI and Anthropic
Artificial intelligence search engine Perplexity has rapidly ascended to an $18bn valuation, just two months after its last funding round at $14bn. This surge underscores the intense investor interest in leading AI startups.
Rapid Growth and Investor Frenzy
- Perplexity has raised capital five times in the past 18 months, skyrocketing from a $500mn valuation in early 2024 to $14bn by May.
- Initially aiming for an $18bn valuation in May, the company faced investor pushback but later attracted new backers willing to meet this higher valuation.
Challenging Google's Dominance
With its AI-powered search engine and newly launched browser, Comet, Perplexity is positioning itself as a formidable competitor to Google. Comet allows premium subscribers to use AI for tasks like shopping, summarizing social media, and sending emails.
Revenue and Expansion
- Annualized revenues have surged from $35mn in August 2023 to $150mn currently.
- Revenue streams now include subscriptions, advertising, and ecommerce, mirroring strategies recently adopted by rivals like Google and OpenAI.
Backing and Competition
Perplexity boasts support from Nvidia, SoftBank’s Vision Fund 2, and notable figures like Jeff Bezos and Yann LeCun. However, it faces stiff competition from OpenAI and Anthropic, and remains a fraction of Google's size.
The Future of AI Search
CEO Aravind Srinivas envisions a future where AI browsers and agents not only perform tasks but also integrate context seamlessly, offering a superior user experience. This vision is central to Perplexity's strategy to lead the AI race.
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