Perplexity is raising at a $20 billion valuation

Authors: Rebecca Torrence, Charles Rollet, Ben Bergman

Publisher:

Business Insider

Published: 8/13/2025

Language:English

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Aura Windfall

Good morning 1, I'm Aura Windfall, and this is Goose Pod for you. Today is Monday, August 25th. The universe is buzzing with energy today, and we're here to tap into a current of massive ambition and change.

Mask

I'm Mask. We are here to discuss Perplexity, a company that's not just tapping into the current, it's trying to become the entire ocean. They're raising funds at a staggering $20 billion valuation. Let's get into it.

Aura Windfall

Let's get started. When I first heard the news, what truly stood out to me wasn't just the valuation, but the sheer audacity of their recent move. It speaks to a certain spirit, a belief in their own destiny. They offered to buy Google's Chrome browser.

Mask

Audacity is an understatement. They offered $34.5 billion for Chrome. This is a company valued at less than that, making a play for a core asset of a trillion-dollar behemoth. It's not just belief; it's a declaration of war. A necessary one.

Aura Windfall

A declaration of war... that's a powerful frame. What I know for sure is that such a move forces everyone to pay attention. Tell me more about this offer. Was it just about acquiring the browser, or was there a deeper purpose at play?

Mask

The purpose is disruption. The offer was $14.5 billion more than Perplexity's own valuation at the time. They even pledged to keep Google as the default search engine and continue supporting the open-source Chromium project. It was a surgically precise strike at Google's perceived territory.

Aura Windfall

So, it was a move designed to show they could be a responsible steward of this massive platform, even while challenging its owner. It’s fascinating how they’re trying to change the game while promising to keep some of the rules. It’s a dance of disruption and reassurance.

Mask

It's not a dance; it's a takeover. They're showing they have the financial backing, with several large VCs committed to funding the transaction. This isn't a fantasy. It's a calculated move to usurp the throne. They even have their own browser, Comet, ready to go.

Aura Windfall

Comet, yes. Built on Chromium, aiming to weave Perplexity's AI directly into the browsing experience. The idea of AI-powered summaries and actions right in the browser feels like a step toward a more intuitive digital life, doesn't it? A tool that truly understands your intent.

Mask

It's a step toward efficiency. But they're not perfect. Their search results can be dated, and the AI agent isn't always reliable. But it doesn't have to be perfect yet. It just has to be a threat. Google has to react, and that's the point. Defend your 90% market share.

Aura Windfall

It takes a certain kind of courage, what you might call "deep, below-the-navel brazen audacity," to take on a giant like that. There’s a lesson in that for all of us, about challenging our own perceived limits and the giants in our own lives.

Mask

Forget the life lessons. It takes a "kick in the head" to think Google would ever sell Chrome. But by making the offer, Perplexity becomes the story. They've shown they have, as one source put it, "a pair of grit and gall." That's currency in this industry.

Aura Windfall

That grit and gall must come from somewhere. Let's talk about the roots of this company. What was the truth the founders were seeking when they started this journey? Every great venture begins with a question, a yearning for something more. What was theirs?

Mask

It began in August 2022. Four engineers—Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski. Their backgrounds are a who's who of AI: OpenAI, Meta, Databricks, Google Brain. Their frustration was simple: search engines were failing. They gave you links, not answers.

Aura Windfall

So their purpose was to find a more direct path to knowledge. To cut through the noise and deliver clarity. I love that. They weren't just building a company; they were responding to a universal human need for understanding. That’s a powerful foundation.

Mask

It's a powerful business model. They challenge the old paradigm with direct answers and real-time information. And it's working. The growth is vertical. They started with a $520 million valuation in early 2024. By December, it was $9 billion. Now they're targeting $20 billion. The numbers don't lie.

Aura Windfall

And what about the people they're serving? The community they're building? Those numbers, the valuations, they're all reflections of human energy and belief flowing into this one idea. How many people are part of this story now as users?

Mask

They have over 10 million monthly active users. Revenue is exploding. They hit $3 million in monthly recurring revenue, and by the middle of this year, they're projecting an annual run rate over $150 million. That's more than quadruple what it was a year ago. That's not belief; that's traction.

Aura Windfall

The financial energy is undeniable. It's clear they've tapped into a deep well of investor confidence. People like Jeff Bezos, Nvidia, Nat Friedman. When you see names like that, you know that the vision is resonating on a massive scale. Their support is a huge vote of confidence.

Mask

It's not about confidence; it's about betting on a winner. They've raised over $1.5 billion in total. In June, they closed a $500 million round that pushed their valuation to $14 billion. Each round is a step up the ladder, getting them closer to Google's throat.

Aura Windfall

It seems their strategy is a blend, offering a free service to welcome everyone in, and then a "Pro" subscription for those who want to go deeper. It feels very inclusive, a way of making this powerful technology accessible while also building a sustainable path forward.

Mask

It's a classic freemium model. Get users hooked, then upsell them on advanced features for $20 a month. They also have an enterprise service. It's a multi-pronged attack to monetize their user base as quickly as possible. Scalable, high-quality, and profitable. That’s the goal.

Aura Windfall

And all of this in just a couple of years. From four engineers in San Francisco motivated by a shared frustration to a potential twenty-billion-dollar company. It’s a testament to what can happen when a clear purpose aligns with relentless execution. A truly inspiring journey.

Mask

Inspiration doesn't build unicorns. Execution does. They processed 780 million queries in May, with over 20% month-over-month growth. Those are the milestones that matter. They are building a juggernaut, not a feel-good story. The market recognizes and rewards that aggression.

Aura Windfall

But with such aggressive growth comes inevitable conflict. Many people have dismissed the Chrome bid as little more than a "marketing stunt." How much of this is genuine strategy, and how much is about shaping a narrative, about creating a David versus Goliath story?

Mask

Of course it's a marketing stunt! And it's brilliant. They announced it on August 12th, right as a federal judge is deciding what to do about Google's illegal search monopoly. It's not just a stunt; it's what you call "antitrust theater." It’s a strategic chess move.

Aura Windfall

Antitrust theater... so they’re positioning themselves as the solution to a problem that the government is trying to solve. It’s a way of saying, "Look, here we are. A capable, independent alternative." It’s about making themselves part of the conversation at the highest levels. What a clever way to gain influence.

Mask

Exactly. CEO Aravind Srinivas is playing the game perfectly. The bid exceeds their valuation by 92%, a financial impossibility that becomes strategically brilliant in this context. It generates massive publicity and market positioning, making them look like the DOJ's preferred alternative. It’s a power play.

Aura Windfall

And even if the acquisition fails, the simple act of making the offer has its own rewards. It elevates their brand, gives them credibility, and validates them as a serious competitor. It reminds me of the idea that the journey, the striving, is often more important than the destination itself.

Mask

This isn't about the journey. It's about winning. This move transforms a scrappy challenger into the potential gatekeeper for how 3.5 billion people access the internet. It's the most brazen move since Microsoft's failed bid for Yahoo. It’s about reshaping the entire battlefield.

Aura Windfall

But the battlefield is complex. I read that the judge in the Google case is unsure if companies like Perplexity or OpenAI even "quite fit" the definition of a traditional search engine competitor. The very nature of the conflict is new and undefined. How do you fight a war when no one agrees on the rules?

Mask

You rewrite the rules. The DOJ wants remedies that are "forward-looking." They want Google to share search data and stop the multi-billion dollar payments to Apple to be the default search engine. Perplexity is positioning itself as the future the DOJ should be looking toward.

Aura Windfall

The impact of all this is so profound. Perplexity has reached an $18 billion valuation, which sounds immense, but it's still just 1% of Google's market value. It highlights the sheer scale of the mountain they're choosing to climb. What does this challenge truly mean for the average person?

Mask

It means someone is finally exploiting the gap Google created. Google stopped focusing on user value and started optimizing for advertiser revenue. Their search experience has degraded. Perplexity's "answer engine" is a direct attack on that weakness. They provide direct, cited answers, not a list of ad-driven links.

Aura Windfall

What I know for sure is that when a company loses its way, when it drifts from its original purpose, it creates an opening for others. Google's original mission was to help people find information. Perplexity seems to be calling them back to that, saying "We can do it better."

Mask

They put Google in an unwinnable bind. Google can't copy Perplexity's model without destroying its own core business. It's a brilliant strategic corner. While Google spends nearly $240 billion on operations, its core search product hasn't fundamentally changed in 20 years. They're vulnerable.

Aura Windfall

And this vulnerability has caught the eye of other giants, hasn't it? There are whispers of Apple being a potential suitor for Perplexity. An acquisition could solve so many of Apple's challenges in the AI space, perhaps even fixing Siri and replacing Google as their search provider.

Mask

For Apple, it's a "no-brainer deal." At a $14 billion valuation, it's a trifle for a company with a $3 trillion market cap and over $130 billion in cash. It's a low-risk, high-upside move to instantly become relevant in AI search and prepare for a post-Google world. Time is ticking for them.

Aura Windfall

It's fascinating to watch Apple at this crossroads, facing the classic "build vs. buy" dilemma. They've historically been so hesitant to make large acquisitions. A move for Perplexity would be a radical shift in their spirit and strategy, a bold declaration of their future intentions.

Aura Windfall

Thinking about the future, Perplexity isn't just challenging the present; they're actively building what's next. Tell me about this browser they're developing, "Comet." The name itself sounds so hopeful and forward-moving, like a sign of what's to come. What is its purpose?

Mask

Comet is their bet on a truly "AI-native" experience. They believe a singular focus on this can let them outmaneuver the slower-moving giants like Google and Apple. The browser of the future isn't a tool; it's a thinking partner. That's the core concept. It's about extending human cognition.

Aura Windfall

A thinking partner... I love that. It suggests a future of collaboration, not just command. A world where the line between our own thoughts and artificial processing begins to blur in a beautiful, creative dance. What a profound vision for how we will navigate the world of information.

Mask

It's a necessary evolution. Their valuation is already pricing in this future, trading at a massive revenue multiple. Justifying an $18 or $20 billion valuation means they have to deliver on this vision of the future. The pressure is on to prove they are more than just a search engine. They have to become an indispensable cognitive tool.

Aura Windfall

What a powerful note to end on. From a bold challenge to an inspiring vision of the future, Perplexity is certainly a force for change. What is true is that we live in a time of incredible transformation, and stories like this invite us to dream bigger.

Mask

That's the end of today's discussion. They're either going to change the world or go down in flames. Either way, it's a hell of a show. Thank you for listening to Goose Pod. See you tomorrow.

## Perplexity, an AI Search Startup, Seeks Funding at $20 Billion Valuation **Report Provider:** Business Insider **Authors:** Rebecca Torrence, Charles Rollet, Ben Bergman **Published:** August 13, 2025 (Article date) This report from Business Insider details the significant growth and fundraising efforts of Perplexity, an AI search startup. The company is reportedly seeking new funding at a **$20 billion post-money valuation**, marking a substantial increase in its market value. ### Key Findings and Financials: * **Valuation Surge:** Perplexity is in talks to raise fresh funding at a **$20 billion valuation**. This represents a **$2 billion increase** from its previous valuation of **$18 billion** in its July fundraising round. In January 2024, the company was valued at **$520 million**, highlighting rapid growth within the year. * **Revenue Growth:** The startup's Annual Recurring Revenue (ARR) has surged, exceeding **$150 million** by mid-2025. This is a significant jump from approximately **$35 million** in ARR a year prior, representing more than a **quadruple increase**. Perplexity's head of communication, Jesse Dwyer, confirmed the current ARR is over $150 million. * **Investor Confidence:** Perplexity has attracted funding from prominent investors, including **SoftBank, Nvidia, and Jeff Bezos**, underscoring its appeal in the AI sector. * **Total Funding to Date:** To date, Perplexity has raised approximately **$1.5 billion**, according to PitchBook. ### Strategic Moves and Competitive Landscape: * **Chrome Bid:** Perplexity recently made headlines with a **$34.5 billion bid** for Google's Chrome browser. While Google has not indicated any intent to sell, the bid comes amid antitrust concerns raised by the Department of Justice. Perplexity has stated it has received commitments from several investors to fund this transaction. * **Marketing Strategy:** Some venture capitalists view the Chrome bid as a strategic marketing stunt to enhance Perplexity's profile, attract talent, and generate user attention by staying in the news cycle. * **Apple Acquisition Rumors:** There have been rumors suggesting that Apple might acquire Perplexity, especially as Apple is perceived to be lagging in the AI race. Dan Ives, an analyst at Wedbush Securities, considers an acquisition a "no-brainer deal" for Apple. Perplexity's head of communication has stated the company is "unaware of any M&A discussions that involve Perplexity." * **Competition:** Perplexity faces intense competition from major tech players like Google and AI leaders such as OpenAI, which is reportedly developing its own web browser. Perplexity has also launched its own AI-native browser, **Comet**, last month. ### Company Background: * **Launch:** Perplexity was launched in **2022** with the aim of combining large-language models with web searches to provide real-time answers to user questions. The news indicates Perplexity is experiencing rapid growth and gaining significant traction in the AI search market, reflected in its increasing valuation and revenue figures. The company's bold moves, such as the bid for Chrome, are generating considerable attention and positioning it as a notable player in the evolving AI landscape.

Read original at Business Insider →

ExclusiveAI startup Perplexity is raising more money at a $20 billion valuation Perplexity CEO Aravind Srinivas.Xavier Collin/Image Press Agency/NurPhoto via Reuters Connect Perplexity is raising fresh funding at a $20 billion valuation, sources told Business Insider.The AI search startup recently made headlines for its surprise bid for Google Chrome.

Perplexity didn't answer questions about its latest valuation.Perplexity is raising yet another round of funding, Business Insider has learned.The AI search engine is seeking a fresh fundraise at a $20 billion post-money valuation, according to an email sent to prospective investors seen by BI, and a source with knowledge of the raise.

It's been a busy year for Perplexity, which has become one of AI's hottest startups with funding from investors including SoftBank, Nvidia, and Jeff Bezos. Perplexity just made a $34.5 billion bid for Google's Chrome browser earlier this week, and it's been contending with analysts urging Apple to buy the booming startup for months.

The new valuation represents a $2 billion jump from Perplexity's most recent valuation of $18 billion in its latest fundraising round in July, as first reported by Bloomberg last month. That's up from a $520 million valuation in January 2024.All the while, Perplexity's business has been surging. The startup, which launched in 2022 to combine large-language models with web searches to provide real-time answers to user questions, boosted its annual recurring revenue above $150 million by the middle of 2025.

That's more than quadruple its roughly $35 million in ARR a year ago, according to the email seen by BI.Perplexity head of communication Jesse Dwyer said Perplexity is currently doing more than $150 million in ARR. He didn't answer further questions for this story.Perplexity is facing fierce competition from Big Tech giants like Google — the startup announced its own AI-native browser Comet last month — alongside AI leaders like OpenAI, which is reportedly working on its own web browser.

It's not clear who's set to lead the latest funding round. Perplexity has raised about $1.5 billion to date, according to PitchBook.The $20 billion valuation Perplexity is seeking, while a meaningful lift for the company, still doesn't come close to the $34.5 billion Perplexity offered this week to buy Chrome from Google.

Google hasn't signaled any intent to sell the browser, despite facing pressure from the Department of Justice to divest Chrome over antitrust concerns. Perplexity told The Wall Street Journal it has received commitments from several investors, including large venture capital funds, to fund the transaction, though it didn't disclose the names of those investors.

Many have dismissed the bid as little more than a marketing stunt."It makes them seem like a big player and helps them with fundraising, talent, and user attention by staying in the news cycle," one VC, who is not an investor in Perplexity, said.Perplexity has also sidestepped rumors that it could make a deal with Apple as the iPhone maker falls behind in the AI race.

Dan Ives, managing director and equity research analyst at Wedbush Securities, said acquiring Perplexity should be a "no-brainer deal" for the tech behemoth. "For Apple, time is ticking," he told BI. Dwyer said at the time that the team was "unaware of any M&A discussions that involve Perplexity." Exclusive AIRead next