Perplexity secures $500 million funding round at $14 billion valuation

AI search startup Perplexity has closed a new $500 million financing round, according to people familiar with the deal. The transaction values the company at $14 billion, underscoring investor appetite for artificial intelligence businesses that can challenge established search and information platforms.

The funding adds fresh capital to a company that has rapidly emerged as one of the most closely watched names in the AI search market. Perplexity’s tools aim to give users direct, conversational answers backed by web sources, a format that has attracted attention from consumers and venture investors alike.

The latest valuation reflects how quickly private-market expectations for leading AI companies have climbed, even as competition intensifies and questions remain about long-term profitability. The deal also signals that major backers continue to place bets on startups building search and productivity products around generative AI.

Reuters reported the financing based on information from people familiar with the matter. Details on the investors involved and the final terms of the round were not immediately disclosed.