Key Points
- Perplexity AI seeks to raise $500 million in a new funding round, aiming for a valuation of over $8 billion.
- The Jeff Bezos-backed company has an estimated annualized revenue of around $50 million.
- The company introduced a revenue-sharing program to address publishers’ concerns over content use.
- Perplexity’s search tools are powered by large language models (LLMs) from OpenAI and Meta, enabling real-time answers with citations.
Perplexity AI, the artificial intelligence startup backed by Jeff Bezos, has entered fundraising talks to raise $500 million in its latest funding round. According to a report from The Wall Street Journal citing people familiar with the discussions, the company aims to more than double its valuation to $8 billion or more. This move highlights Perplexity’s ambition to scale further its AI technology, which is gaining traction in the industry.
Supported by Nvidia, another major player in the tech space, Perplexity AI has been generating around $50 million in annualized revenue based on recent sales. Despite its growing success, the company has declined to comment on the fundraising effort, which has captured significant attention from investors.
The company specializes in AI-powered search tools that allow users to receive immediate answers to questions, complete with citations and sources. These tools are powered by various large language models (LLMs), including OpenAI and Meta’s open-source model, LLaMA. This combination of models enables Perplexity to summarize and generate information effectively, making it a standout in the competitive AI landscape.
However, Perplexity has faced legal hurdles from prominent media organizations. In October, the startup received a “cease and desist” notice from The New York Times, demanding that the company stop using its content for its AI tools without permission. This incident follows earlier accusations of plagiarism from other media outlets, including Forbes and Wired, which accused Perplexity of using their content without proper authorization.
Perplexity AI launched a revenue-sharing program to address these concerns and compensate publishers whose content is used within the platform. This initiative has been seen as a positive step toward resolving the legal issues surrounding content usage. However, some critics still argue that the company needs to be more transparent about how it sources its information.
Perplexity’s push for additional funding underscores its commitment to enhancing its capabilities while navigating the challenges posed by content rights and regulations as the AI industry continues to expand. With backing from influential investors like Bezos and Nvidia, Perplexity AI is poised to continue shaping the future of AI-powered search tools.
