Perplexity AI Secures $200M Amid Rapid Growth, Now Valued at $20B

Perplexity, the AI-powered search engine startup challenging Google, has reportedly raised $200 million in new funding at a $20 billion valuation. This major investment highlights Perplexity’s swift ascent in the competitive world of AI-driven search.

Key Details of the Funding Round

• New Capital: $200 million raised, bringing total funding to approximately $1.5 billion since its founding three years ago.
• Valuation Surge: The valuation jumped from $18 billion in July 2025 to $20 billion in this latest round.
• Revenue Growth: Annual recurring revenue (ARR) is reportedly nearing $200 million, up from $150 million just last month.

Background: A Rapid Funding Trajectory

The latest capital injection comes on the heels of a $100 million round in July 2025, which valued the company at $18 billion. Earlier this year, Perplexity completed a $500 million round at a $14 billion valuation, led by Accel. The identity of the lead investor for the new $200 million round remains undisclosed.

Perplexity’s Bold Moves Against Google

Perplexity is positioning itself as a serious contender to Google’s search dominance. In August 2025, the company made headlines by offering to acquire Google’s Chrome browser for $34.5 billion. This move followed antitrust proposals from the U.S. Department of Justice that suggested Google may need to divest its browser business. However, a recent federal court decision ruled that Google would not be required to break up its search business, allowing it to retain Chrome.

What’s Next for Perplexity?

As Perplexity’s user base and revenue continue to climb, the company is likely to expand its platform and further innovate in the search space. With significant backing and ambitious plans, Perplexity is solidifying its role as a formidable player in AI-powered search and information retrieval.

References

• The Information: Perplexity Finalizes $20B Valuation Round
• Bloomberg: Perplexity Valued at $18 Billion with New Funding
• Business Insider: Perplexity Valuation Jumps to $20 Billion
• TechCrunch: Perplexity Offers to Buy Chrome
• TechCrunch: DOJ Proposal Calls for Google to Divest Chrome
• TechCrunch: Google Avoids Breakup in Antitrust Trial