Perplexity AI Targets $8 Billion Valuation in $500M Funding Talks

Perplexity AI, an artificial intelligence company backed by Amazon founder Jeff Bezos, has entered fundraising discussions aimed at significantly boosting its valuation. The startup is reportedly seeking to more than double its current valuation to over $8 billion, according to the Wall Street Journal (WSJ), citing sources familiar with the matter.

The company, which has Nvidia among its backers, is looking to raise around $500 million in this new funding round. Perplexity AI’s current estimated annual revenue is approximately $50 million, based on recent sales figures, the WSJ reported. However, the company declined to provide a comment on the matter when approached.

Past Legal Challenges

Despite its rapid growth, Perplexity AI has faced legal hurdles along the way. In October, the startup received a "cease and desist" notice from The New York Times, which demanded that the company stop using the newspaper's content for its generative AI applications. Other major media organizations, such as Forbes and Wired, have also accused Perplexity AI of plagiarizing content.

In response, Perplexity launched a revenue-sharing program to address concerns from content publishers, offering a more collaborative approach to how it uses external content within its AI-generated responses.

What Perplexity AI Offers

Perplexity AI is known for its advanced search tools that allow users to obtain instant, well-sourced answers to their questions. It leverages a variety of large language models (LLMs) such as OpenAI's models and Meta's open-source LLaMA, to generate summaries and detailed information.

Aiming for Growth Amid Legal Scrutiny

As Perplexity AI moves forward with its ambitious fundraising goals, it continues to face scrutiny from media organizations for its AI practices. However, its rapid growth, notable backers, and innovative search technology put the company in a strong position to continue expanding, despite legal challenges.