Perplexity, the AI-powered search startup that compete with Google by providing conversational answers to user queries, has secured $200 million in new capital at a $20 billion valuation, The Information reported. The fresh funding comes just two months after the company raised $100 million at an $18 billion valuation, according to Bloomberg’s July report.
Since its founding three years ago, the rapidly growing AI company has raised $1.5 billion in total funding, according to PitchBook data. It’s unclear who led Perplexity’s latest capital injection. Bloomberg reported that the July financing was an extension of a previous $500 million round completed earlier this year at a $14 billion valuation, which came just months earlier, a deal that was led by Accel.
According to a source familiar with the company, Perplexity’s annual recurring revenue (ARR) is approaching $200 million. Last month, Perplexity’s head of communication told Business Insider that the company’s ARR was more than $150 million.
Perplexity didn’t immediately respond to a request for comment.
The funding comes as Perplexity positions itself as a challenger to Google’s search dominance. In August, Perplexity offered to buy Google’s Chrome browser for $34.5 billion. The offer came after the Justice Department, alleging that Google was acting anticompetitively, proposed that the company sell its web browser. However, earlier this month, a federal judge ruled that Google will not have to break up its search business, effectively allowing the search giant to keep Chrome.