Artificial intelligence search engine Perplexity has reached a valuation of $18 billion, just two months after being valued at $14 billion. This sharp rise comes amid a wave of investor interest in next-generation AI companies.
This latest valuation leap is part of a broader trend for the three-year-old start-up. Since early 2024, Perplexity has completed five separate funding rounds, increasing its value from just $500 million at the start of the year. Although investors were hesitant when Perplexity sought the $18 billion figure in May, the company reached that valuation shortly after the funding round closed, when fresh interest prompted additional equity sales.
A Direct Challenge to Google
Perplexity is making no secret of its ambition. It aims to take on Google’s long-held dominance in online search. The company is doing more than just tweaking search algorithms; it is rethinking the user experience. Perplexity has launched a new AI-powered browser called Comet, designed for premium subscribers.
Comet functions like a digital assistant. It can follow voice and text instructions to carry out tasks like online shopping, summarising social media, or sending emails. CEO Aravind Srinivas believes that combining smart AI agents with deep contextual understanding is the next step in internet search.
Perplexity’s User Growth and Revenue Explosion
Despite being a relatively new player, Perplexity is showing impressive traction. By April 2025, the platform had attracted around 30 million users. It has also broadened its revenue model beyond subscriptions to include advertising and ecommerce.
Its financial growth mirrors its user expansion. Annualised revenue has jumped from $35 million in August 2024 to $150 million as of June 2025. That sort of financial acceleration is extremely rare, even in the fast-moving world of tech start-ups.
Perplexity’s backers include some of the biggest names in tech and finance. Nvidia, SoftBank’s Vision Fund 2, New Enterprise Associates, and IVP have all invested. High-profile individuals like Amazon founder Jeff Bezos and Meta’s chief AI scientist Yann LeCun are also involved.
Related: Coinbase Partners With Perplexity AI to Integrate Real-Time Crypto Market Data
This heavyweight backing gives Perplexity a solid foundation, but it is entering a field already dominated by giants. Google remains the clear market leader, with billions of users. And newer players like OpenAI and Anthropic are also competing hard in the AI space.
Despite speculation that tech giants like Apple or Meta might want to buy Perplexity, Srinivas has repeatedly stated his goal is to take the company public. This desire for independence could help Perplexity maintain its innovative edge, but it also means it must continue to grow fast without the safety net of a major parent company.
