Perplexity is on a fundraising hot streak

How hot is the AI-startup fundraising market right now? If you’re an AI-search company, it’s really, really hot.

On Sunday, The Wall Street Journal reported that AI startup Perplexity is in talks to raise $500 million at an $8 billion valuation, in what would be its fourth fundraise of the year, marking a wild turn of events for a company that was valued at $520 million just nine months ago.

Why are investors so excited about this AI startup? Because the company is a front-runner in a market widely seen to be disruptable by AI innovation: search. Perplexity leverages the web to give generative-AI responses to user queries and provides citations for its answers, though some critics argue its still a plagiarism engine and The New York Times has recently sent the AI company a “cease and desist” notice to stop using their content.

But with annualized revenue up from $10 million in March to $50 million in October, it's no surprise that investors are lining up to invest hundreds of millions of dollars.

Exclusive | AI Startup Perplexity in Funding Talks to More Than Double Valuation to $8 Billion

Why are investors so excited about this AI startup? Because the company is a front-runner in a market widely seen to be disruptable by AI innovation: search. Perplexity leverages the web to give generative-AI responses to user queries and provides citations for its answers, though some critics argue its still a plagiarism engine and The New York Times has recently sent the AI company a “cease and desist” notice to stop using their content.

But with annualized revenue up from $10 million in March to $50 million in October, it's no surprise that investors are lining up to invest hundreds of millions of dollars.