Perplexity AI Faces Rivals as Funding Nears $14B

Perplexity AI, backed by Nvidia, is in advanced talks to raise $500 million in a funding round led by Accel, which would value the company at $14 billion, up from its $9 billion valuation in late 2023. The startup has rapidly grown its user base and valuation by offering a search platform that delivers natural language answers with citations, setting it apart from traditional search engines. Perplexity now faces direct competition from Google and OpenAI, both of which have introduced their own AI-powered search features. The company initially sought a valuation as high as $18 billion, but current negotiations reflect a lower target. There is ongoing speculation that Apple may integrate Perplexity's AI search technology into Safari, potentially increasing its reach. The funding discussions highlight both investor enthusiasm and the evolving competitive landscape of AI-driven search.