Perplexity AI, Application-Layer AI Firm, Seeks $500 Million at $14 Billion Valuation with $100 Million Revenue Challenging Google Search

Perplexity AI, an application-layer artificial intelligence company, is in advanced discussions to raise $500 million in a funding round that would value the startup at $14 billion. The company, which does not build large language models but leverages them in its products, has reported an annualized revenue of $100 million, resulting in a revenue multiple of 140 times. This rapid valuation and revenue growth underscore investor enthusiasm about AI's potential to challenge Google's dominance in online search. Industry observers note that Perplexity AI is making noticeable inroads in the AI assistant market, contributing to increasing competition for Google Search alongside other AI platforms such as ChatGPT.