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Perplexity AI raises $100M, Hits $18 Billion Valuation amid AI Boom

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Business Honor - Perplexity AI Raises $100M, Reaches $18B Valuation

Business Honor
22 July, 2025

Perplexity secures funding, now valued at $18B, strengthening its position in AI search.

Perplexity AI, a fast-growing artificial intelligence startup, has raised $100 million in new funding. This latest investment pushes the company’s valuation to $18 billion, according to a source familiar with the deal. The funding is part of an extension to a previous round earlier this year which had valued the company at $14 billion.

Founded in 2022, Perplexity has quickly become one of the top startups using generative AI. The company is known for its search engine driven by AI that aims to compete with traditional players like the Google. It uses advanced language models to give users more direct, conversational answers, rather than just listing links.

Perplexity’s rise has been rapid. Last year, the company grew its valuation from $1 billion to $3 billion, and just months later, it tripled again. According to estimates in March 2025, the firm was valued at $18 billion and was looking to raise up to $1 billion. While that round didn’t fully materialize at the time, the current $100 million funding brings Perplexity back to that target valuation.

The business has not discussed the purchase in public. However, industry experts see this investment as a sign of continued investor confidence in AI technologies, especially in startups building strong products in search and information access.

Perplexity’s success is part of a larger trend in Silicon Valley, where investors are racing to support leading AI startups. With its focus on improving how people find information online using AI, Perplexity is famous to shape the future of internet search. This update shows that generative AI continues to attract strong financial backing and Perplexity is now among the top startups in the space.