Perplexity, an AI-powered search startup, is reportedly in talks to raise up to $1 billion in a new funding round, which could push its valuation to $18 billion. According to Bloomberg, the company's annual recurring revenue has reached $100 million.

This fundraising effort would more than double Perplexity's current valuation of $9 billion, a sharp rise from just $1 billion in April 2024. This surge reflects the company’s impressive growth as competition heats up in the AI-powered search market. Companies like Anthropic and Google are entering the space, with Anthropic adding web search to its AI chatbot, Claude, and Google testing its own AI search engine, AI Mode.

To stay ahead, Perplexity is diversifying its offerings. The company recently teased the upcoming release of its “agentic” browser, Comet, and has strengthened its enterprise offerings. Perplexity recently launched an AI search engine designed to help businesses retrieve data from internal documents.

Despite increasing competition, Perplexity’s expansion into new areas, like its enterprise solutions, reflects its strategy to stand out in the crowded AI search field. With a potential $18 billion valuation, the startup continues to evolve and compete with some of the biggest players in the industry.

Perplexity has not yet commented on the fundraising rumors, but the company’s growth trajectory suggests it’s poised for significant expansion.

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This article was created with AI assistance.