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AI Search Startup Perplexity Valued at $1 Billion

Perplexity’s valuation has doubled in three months in a clear sign of investor enthusiasm for the company’s artificial intelligence chatbot.

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Perplexity AI, a startup using artificial intelligence to build a search engine to compete with Alphabet Inc.’s Google, has raised about $63 million in a new funding round that values the company at more than $1 billion.

The financing, set to be announced on Tuesday, doubles Perplexity’s valuation from just three months ago.The Wall Street Journal previously reported Perplexity was in funding talks.

Founded less than two years ago, Perplexity offers an AI chatbot that summarizes search results, lists citations for its answers and helps users refine their queries to get the best responses. With an emphasis on accuracy, Perplexity has quickly distinguished its chatbot in an increasingly crowded market and earned fans like Nvidia CEO Jensen Huang, who has said he uses the product “almost every day.”

Perplexity, which offers free and paid versions of its service, said it’s generating $20 million in annual recurring revenue.

The startup is announcing a new enterprise version of its chatbot, priced at $40 a month, with added features including stronger security and data protection measures. Bridgewater Associates,Zoom Video Communications Inc. and the Cleveland Cavaliers are among the early group of businesses using the product.

Image: Preplexity.ai