In Short:
Perplexity AI, an AI search company, is in talks to raise about $500 million, aiming to increase its valuation to over $9 billion, up from $3 billion in June. Despite facing plagiarism accusations, Perplexity continues to grow in the generative AI market. Recently, Telefonica’s venture arm, Wayra, invested in the company, aiming to enhance information search for users.
Perplexity AI Seeks Major Funding Increase
Perplexity AI, a prominent player in the artificial intelligence (AI) search sector, has reportedly initiated discussions for a new funding round with the ambition of enhancing its valuation to approximately USD 9 billion or more. The firm is targeting to raise around USD 500 million, although the final amount may vary, as detailed by CNBC, citing knowledgeable sources. This initiative follows a notable increase from its previous valuation of USD 3 billion recorded in June.
Overview of Fundraising Activities
At the start of the year, Perplexity AI was valued at around USD 500 million. Established amidst the burgeoning generative AI landscape, the company has successfully completed three funding rounds thus far in 2024, garnering substantial interest from investors.
Despite its progress, Perplexity is under scrutiny due to allegations of content scraping and plagiarism from media organizations, including The New York Times. In response to these accusations, which the company has denied, Perplexity AI continues to strive for expansion within the generative AI market, positioning itself against competitors such as OpenAI, the organization behind ChatGPT.
Investment from Wayra
Recently, Wayra, the corporate venture capital arm of Telefonica—a leading telecommunications company based in Spain—announced an undisclosed investment in Perplexity AI, as reported by TelecomTalk.
Wayra is optimistic that Perplexity will introduce a unique approach that transforms how users access information online, enabling them to pose direct questions and receive articulate, concise answers filtered from a curated range of relevant sources.
Additionally, Telefonica has disclosed a global commercial agreement with Perplexity AI aimed at providing exclusive advantages to its customers in Brazil, the UK, and Spain, with intentions to explore the potential for extending this collaboration to other regions.
