AI Startup Perplexity Secures $73.6M, Ups Valuation to $520M

By: Eliza Bennet

San Francisco AI startup, Perplexity AI, latest to secure $73.6 million in Series B funding. The funding round led by IVP with participation from tech companies and leaders such as NVIDIA and Jeff Bezos.

Started less than two years ago, Perplexity AI has achieved rapid growth with 10 million active users per month and managed half a billion queries in 2023 alone. Their unique direct answers approach to queries have been credited for this success. Despite this, the firm is yet to achieve profitability

Nonetheless, revenue streams have started flowing from their Pro offering. It costs $20 per month and provides access to advanced features. CEO, Aravind Srinivas, believes the ability to fine-tune top performing AI models sets them apart and envisions a future where Perplexity reshapes how people access information online.

Perplexity's success comes at a time when big tech giants like Google and Microsoft are shifting towards AI-first interfaces as industry trends lean towards generative AI, predicted to be worth $667 billion by 2030.