AI search engine startup Perplexity AI raises $62.7M in funding at a valuation of $1.07 billion

AI search engine startup Perplexity AI has raised $62.7 million in funding led by Daniel Gross, former head of AI at Y Combinator. Other investors who invested include Stan Druckenmiller, NVIDIA, billionaire Jeff Bezos, Tobi Lutke, and Garry Tan, among others. 

The round takes Perplexity’s valuation to a striking $1.04 billion. According to Co-founder & CEO Aravind Srinivas, the startup plans to use the raised capital to expand usage among consumers and knowledge workers within enterprises.

Partnership with Deutsche Telekom and SoftBank

Perplexity AI also formed key partnerships with international giants such as Deutsche Telekom and SoftBank, aiming to distribute its innovative search engine to a global audience of 116 million users. 

The partnership comes after an earlier collaboration announced with SK Telecom at the Mobile World Congress in February.

Enhancements in AI search capabilities

Founded in 2022 by Andy Konwinski, Denis Yarats, Johnny Ho, and Aravind Srinivas, The San Francisco-based startup is advancing the search engine landscape by integrating AI and chatbot technologies. 

Utilizing large language models like GPT-4, Claude 3, and Mistral Large, along with custom models, Perplexity AI offers a unique search experience that directly answers user queries with accurate information and source citations.

Launch of Perplexity Enterprise Pro

Addressing the needs of the enterprise market, Perplexity has introduced the Perplexity Enterprise Pro plan, priced at $40 per month or $400 annually per seat.

The plan includes enhanced security features like SOC2 certification, single sign-on integration, and stringent data retention policies. Interestingly, The offering has attracted a wide array of launch customers across diverse sectors, including Databricks, Stripe, Zoom, and HP.

With its recent developments and rapid growth, Perplexity AI is challenging established giants like Google in the search engine domain. The company is driven by a mission to refine knowledge discovery for users worldwide, boosting efficiency and enhancing information accessibility.

Moving forward, Perplexity AI aims to further its reach and redefine the search experience in the AI-driven age.