Perplexity AI, a cutting-edge search startup, has successfully concluded its Series B funding round, securing a substantial $73.6 million. The investment was led by prominent backers, including Nvidia and Jeff Bezos, founder of Amazon. This injection of capital has propelled Perplexity AI to a noteworthy valuation of $520 million.
Specializing in the development of advanced search tools that deliver instant answers along with sources and citations, Perplexity AI has attracted a diverse group of investors. In addition to Nvidia and Bezos, notable participants in the funding round include NEA, Databricks, and Bessemer Venture Partners, among others.
Founded in August 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski, Perplexity AI has experienced rapid growth. In December 2023 alone, its website and mobile web witnessed a remarkable surge with 45 million visits, a substantial increase from the 2.2 million recorded at the service’s launch in December 2022.
In a market largely dominated by tech giant Google, Perplexity AI remains determined to carve out its niche. The newly acquired funds are earmarked for strategic initiatives, including team expansion. The company aims to grow its workforce from 38 to approximately 60 employees by the year-end. Furthermore, the investment will fuel ongoing product development, support customer adoption, and facilitate global expansion efforts.
CEO Aravind Srinivas expressed confidence in the startup’s approach, highlighting its focus on fine-tuning various top-performing AI models instead of relying on a singular one. Srinivas believes this strategy positions Perplexity AI as a next-generation search tool poised to succeed legacy platforms like Google.
Srinivas emphasized the startup’s unique value proposition, stating, “It removes the burden of prompt engineering and does not require users to ask perfectly phrased questions to get the answers they seek. This enables users to gain more relevant and comprehensive answers than other AI chatbots, traditional search engines, or research tools.” This sentiment was shared in a blog post released in conjunction with the funding announcement.
Perplexity AI’s innovative search engine operates through a chatbot-like interface, allowing users to pose questions in natural language. The platform offers a variety of large language models (LLMs) for users to select, including OpenAI’s GPT-4, Anthropic’s Claude 2.1, Google Gemini, or Perplexity’s proprietary Pro model. Priced at a subscription fee of $20 per month, users can customize their search experience based on individual preferences.
As Perplexity AI continues to disrupt the search engine landscape, the funding and strategic initiatives signal a commitment to growth, innovation, and establishing a unique identity in a market dominated by established players. The startup’s trajectory underscores its potential to redefine how users engage with and access information through advanced AI-driven search capabilities.
