📣 Perplexity AI on Track for a $9 Billion Valuation!
posted 21 Oct 2024
Perplexity AI, the developer of an AI-powered search engine, is planning to raise over $500 million in a new funding round, which could push its valuation to $9 billion. While discussions are still in the early stages, the company has already held promising meetings with potential investor
Earlier this summer, Perplexity AI was valued at $3 billion, with key stakeholders including SoftBank Group, Amazon, and Nvidia. Interestingly, the push for the new funding round has come from the investors themselves.
Currently, Perplexity AI generates revenue through paid subscriptions and additional services, such as internal corporate search features for documents and financial data. The company also plans to introduce advertising on its platform soon.
AI companies will need to rely on advertising for revenue, as even industry giants like OpenAI are facing massive losses. Some experts predict they could face bankruptcy by 2029,noted GNcrypto analyst Anton Kryshtal.
Despite challenges, Perplexity AI continues to grow in terms of both investments and user engagement. Over the last year, its valuation has increased sixfold across three funding rounds (it was valued at $520 million in January). Its annual revenue now stands at $50 million, and the platform handles 15 million daily queries.
Like many AI developers, Perplexity AI faces legal hurdles, with multiple copyright infringement lawsuits filed against it. Several media outlets and content creators, including Forbes, have accused the company of plagiarism, claiming it copied entire articles.
In response, Perplexity AI has introduced a revenue-sharing program for authors, offering compensation for the use of their content through the AI-powered search platform. Despite these challenges, the company remains a prominent player in the AI industry and continues to attract investor interest.
Other AI firms are facing similar situations. For example, OpenAI, one of Perplexity AI’s competitors, raised $6.6 billion in early October 2024, pushing its valuation to a record-breaking $157 billion, making it the highest-valued company in the industry.
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