Perplexity eyes a $14 billion valuation as late-stage funding talks round the corner.
Perplexity is in advanced discussions to raise roughly $500 million in a new financing round led by Accel, The Wall Street Journal reports, lifting its implied valuation from $9 billion in December to about $14 billion.
Backed by Nvidia (NVDA, Financial) and investors such as Jeff Bezos's Bezos Expeditions and Institutional Venture Partners, the startup has seen blistering growth in usage as it positions itself to challenge Google's (GOOG, Financial) search dominance with AI-driven results.
The infusion, if completed, would mark Perplexity's third major round in less than a year and could come at terms more favorable than its last raise, reflecting growing investor appetite for generative-AI plays.
Nvidia's early backing has proven prescient: Perplexity's engine runs on Hopper-based GPUs that enterprises prize for large-language tasks, and its growing API business has begun monetizing high-volume queries from corporate clients. Apple (AAPL, Financial) is also reportedly in talks with Perplexity after noting a dip in Safari search share, suggesting that iPhone users are increasingly turning to AI-powered alternatives.
Why it matters: A $14 billion price tag underscores outsized expectations for AI search startups and signals that investors see Perplexity as a principal rival to Google, with potential spillover benefits for chipset suppliers like Nvidia.
