Perplexity AI Inc., the artificial intelligence-powered search engine vying to challenge Google’s dominance, has secured fresh capital that pushes its valuation to $18 billion, according to a person familiar with the matter.

The Silicon Valley startup raised $100 million in the latest financing round, the person said, requesting anonymity due to the private nature of the deal. This transaction extends a previous funding round from just a few months ago, which had valued the company at $14 billion. The sharp valuation increase reflects the ongoing rush among investors to back leading players in the booming AI industry.

Perplexity declined to comment on the funding news. The Financial Times first reported some aspects of the deal.

Meteoric Rise

Founded in 2022, Perplexity has quickly established itself as one of the most prominent companies using generative AI to reimagine core internet services — in its case, search. Its AI-powered platform offers concise, direct answers to user queries, aiming to provide a faster and more intuitive alternative to traditional search engines.

The company’s growth trajectory has been extraordinary:

• Last year, Perplexity’s valuation tripled from $1 billion to $3 billion.
  
• Several months later, it tripled again, reaching $9 billion.
  
• By early 2024, Perplexity was valued at $14 billion — and now, just months later, it has achieved the $18 billion milestone.
  

Funding Journey

In March, Bloomberg News reported that Perplexity was exploring a raise of up to $1 billion at an $18 billion valuation. The company ultimately proceeded with a smaller investment at a $14 billion value. This latest $100 million infusion returns Perplexity to its original target.

The surge in investor interest reflects a broader shift in Silicon Valley, where venture capital firms are racing to secure stakes in top-tier AI startups poised to reshape online search, productivity tools, and other core services.

As competition in AI search intensifies, Perplexity’s new funding positions it to expand its technology, grow its user base, and strengthen its position against tech giants like Google and Microsoft.