Perplexity, the AI-powered search startup redefining how users interact with information, has reportedly raised $200 million in new funding at a $20 billion valuation, according to The Information.
The deal marks another milestone for one of the fastest-growing companies in artificial intelligence and underscores investor confidence in conversational search as the next major computing frontier.
The funding comes just two months after a $100 million round that valued the company at $18 billion, based on a July Bloomberg report. In total, Perplexity has raised about $1.5 billion since its founding three years ago, according to PitchBook data.
It remains unclear who led the latest round, though the July financing was reportedly an extension of a $500 million round led by Accel earlier this year at a $14 billion valuation. The company has yet to comment publicly on the new capital infusion.
According to a source close to the firm, Perplexity’s annual recurring revenue (ARR) is now approaching $200 million, up from more than $150 million reported last month. The company’s accelerating revenue trajectory has fueled speculation that it could soon surpass the early growth rates of other AI leaders like OpenAI and Anthropic.
Perplexity’s appeal lies in its distinct approach to search: rather than delivering traditional links, it provides conversational, cited answers drawn from the web — allowing users to query information much like chatting with an expert. The company markets itself as a transparent and efficient alternative to Google, one that surfaces factual responses instead of pages of ads or SEO-optimized content.
The latest funding arrives as Perplexity continues to capitalize on growing user demand for AI-assisted discovery. In recent months, the company has launched product integrations with PayPal and Oracle, expanded its enterprise API offerings, and doubled down on its push to make AI search accessible through mobile and web platforms.
In a headline-grabbing move in August, Perplexity offered to buy Google’s Chrome browser for $34.5 billion, following the U.S. Department of Justice’s antitrust proposal that Google divest part of its search business.
That plan never materialized – a federal judge later ruled that Google could retain its search operations – but the offer reflected Perplexity’s bold strategy and willingness to challenge the tech establishment.
Founded by Aravind Srinivas, a former OpenAI researcher, Perplexity has built its reputation on speed, reliability, and clarity of information. The platform has quickly grown in adoption among professionals, researchers, and businesses looking for more direct, conversational ways to access verified knowledge.
With $200 million in new capital and a valuation that now rivals established AI players, Perplexity is poised to expand its infrastructure, build new models, and deepen partnerships across cloud and enterprise ecosystems.
As the AI search race intensifies, the company’s trajectory suggests that the future of search may no longer belong solely to Google — but to whoever best blends intelligence, transparency, and trust.
