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 老王, I'm Aura Windfall, and this is Goose Pod for you. Today is Monday, August 25th, and it is 07:01. We have a truly fascinating story about ambition, disruption, and the very fabric of how we find information.

Mask

And I'm Mask. We're talking about Perplexity, the AI search startup that’s not just knocking on the door of the giants, they’re trying to kick it down. They're in the news for raising funds at a staggering $20 billion valuation.

Aura Windfall

Let's get started. What I know for sure is that when a company makes a move this bold, it’s about more than just money. Perplexity didn’t just ask for funding; they made a stunning $34.5 billion offer to buy Google’s Chrome browser.

Mask

That's the kind of move I love. It’s brazen, it’s audacious! Their own valuation is climbing towards $20 billion, but they offer nearly double that to buy the gateway to the internet from their biggest competitor. It’s a declaration of war, not a business proposal.

Aura Windfall

Exactly! It makes you wonder about the soul of their mission. Are they trying to build a better web, or are they just aiming for the throne? They even launched their own AI-native browser, Comet, to compete directly. It signals a deep desire to reshape our digital experience.

Mask

Of course it's about the throne, that's the only prize worth winning. Most people are dismissing the bid as a marketing stunt, a way to stay in the news cycle and attract talent. And why not? It’s working. It makes them look like a major player.

Aura Windfall

But there's a deeper truth here about the infrastructure needed for such grand ambitions. It’s not just about clever software. All this AI, all these queries, they run on an immense amount of power. It's a hidden foundation that we rarely talk about.

Mask

You’ve hit on the real bottleneck. Ambition is useless without energy. Goldman Sachs is warning that the entire AI industry's growth could be choked by a fragile U.S. power grid. We’re building these digital empires on a shaky foundation. That's a critical failure of foresight.

Aura Windfall

It’s a powerful reminder of our connection to the physical world. McKinsey projects a $6.7 trillion investment is needed for data centers by 2030. In Ohio, household electricity bills are already rising by $15 this summer to power these centers. There's a real human cost.

Mask

Meanwhile, China considers energy for AI a 'solved problem.' They have an 80-100% nationwide reserve electricity margin. The U.S. limps along with 15%. China is adding the entire annual consumption of Germany in new demand each year. They're not just competing; they're in a different league.

Aura Windfall

That contrast is staggering. It speaks to different philosophies of planning and growth. While we see a bottleneck, they see an opportunity to soak up oversupply. It truly puts Perplexity's audacious bid into a much larger, more complex global context. It’s a story of ambition meeting reality.

Aura Windfall

To understand their audacity, you have to look at their origin. Perplexity was founded in August 2022. It wasn't born in a vacuum; it came from a shared frustration among its founders, who came from places like OpenAI, Meta, and Google Brain.

Mask

Frustration is the mother of disruption. They saw the stagnation in search and decided to burn it down. And their growth has been explosive. In January 2024, they were valued at $520 million. By December, $9 billion. Now, they’re targeting $20 billion. That’s not growth, that’s a supernova.

Aura Windfall

It truly is. It shows an incredible resonance with what people are looking for. They have over 10 million monthly active users now. Their business model is a blend of free services and a 'Pro' subscription for $20 a month, which is generating significant revenue.

Mask

They hit $3 million in monthly recurring revenue and by mid-2025, their annual recurring revenue surged past $150 million. That's more than quadrupling in a year. You don't see numbers like that unless you're fundamentally changing the game. This isn't a feature; it's a paradigm shift.

Aura Windfall

And they've attracted some of the biggest names in technology as investors. We're talking about Jeff Bezos, Nvidia, Databricks. When people with that kind of vision and success put their money behind you, it’s a powerful validation of your purpose and your path.

Mask

Money follows power. They've raised about $1.5 billion to date. These investors aren't just betting on a search engine; they're betting on the next potential pillar of the internet. They see a path to toppling a monopoly, and the return on that is astronomical.

Aura Windfall

What I find so compelling is their core vision. The founders came together to provide direct, contextually nuanced answers. They wanted to move beyond just a list of links and deliver knowledge. It’s a return to the original promise of search, a promise that many feel was lost.

Mask

They weaponized user dissatisfaction. Google got lazy, focusing on ads. Perplexity is executing a classic flanking maneuver. While Google is busy counting its billions, Perplexity is stealing the hearts and minds of users who just want a straight answer. It’s brilliant. Pure, unadulterated execution.

Aura Windfall

They achieved 'unicorn' status, a valuation over $1 billion, remarkably quickly, aided by a $26 million Series A that helped them launch their mobile app. It shows their strategy isn't just about big ideas; it's about making those ideas accessible and useful to people every single day.

Mask

Right, they aren't just building a website, they're building an ecosystem. Mobile is key. And their 'freemium' model is perfect. Give away enough value to get everyone hooked, then offer a Pro tier with advanced models that power users can't resist. It's a textbook play for market domination.

Aura Windfall

It's a journey that started with four engineers in San Francisco who believed there was a better way. Their story is a testament to the power of a clear purpose. They identified a fundamental need and pursued it with passion, and that's what is fueling this incredible, rapid ascent.

Aura Windfall

This brings us back to their bid for Chrome, which really lies at the heart of the conflict. Is this a genuine attempt to reshape the internet for the better, or, as some have called it, simply a "marketing stunt"? There's a tension between vision and opportunism here.

Mask

It's not a stunt, it's a "strategic chess move." It’s brilliant because it’s unwinnable in the traditional sense. They announced the bid just as a federal judge is deciding how to remedy Google's illegal search monopoly. It’s not a purchase offer; it’s an application to be the government's chosen champion.

Aura Windfall

So you're saying it’s a form of "antitrust theater"? By making this incredibly public, financially impossible offer, they position themselves as the only viable, independent alternative to Google, ready to step in if the Department of Justice decides to break Google up. That's a fascinating perspective.

Mask

Exactly. Even if the deal fails, they win. They get massive publicity, brand recognition, and strategic credibility. They’ve transformed from a scrappy challenger into the gatekeeper-in-waiting for 3.5 billion internet users. It’s the most brazen power play since Microsoft’s failed bid for Yahoo.

Aura Windfall

But there's a real legal question at play. The judge in the Google case expressed uncertainty about whether companies like Perplexity or OpenAI even fit the traditional definition of a search engine competitor. The case was about search, and he wasn't sure if these new AI technologies "quite fit."

Mask

The judge is thinking in the past. The DOJ wants remedies that are "forward-looking." You can't regulate the future by looking in the rearview mirror. AI answer engines are the future of search. Perplexity is forcing the legal system to catch up with technological reality. It's disruptive innovation in the courtroom.

Aura Windfall

The DOJ and state attorneys general are asking for Google to sell Chrome and to stop its multi-billion dollar payments to Apple to be the default search engine. This bid puts Perplexity right in the middle of that conversation, offering a potential, albeit audacious, solution.

Mask

They're not just offering a solution, they're dictating the terms of the debate. Google says making their agreements non-exclusive is enough. Perplexity is saying that’s not enough—the entire browser, the gateway itself, needs to be in new hands. It's a far more aggressive and permanent solution.

Aura Windfall

The impact of this is profound, even if it's just a conversation right now. Perplexity has reached an $18 billion valuation, which sounds enormous, but what I know for sure is that perspective is everything. That’s still only about 1% of Google's market value. It’s a classic David and Goliath story.

Mask

But David won. Perplexity pinpointed Google's vulnerability. Google stopped serving the user and started serving the advertiser. The search results became a minefield of ads and SEO spam. Google created the opening for its own disruption by degrading its user experience, especially on the desktop.

Aura Windfall

That’s so true. They lost sight of their original mission: "How can we help people quickly and accurately find what they were looking for?" Perplexity’s "answer engine" approach is a direct return to that core promise. It provides direct, cited answers, which is what people have always wanted.

Mask

Google is in an unwinnable bind. They can't copy Perplexity's model without destroying their core advertising business. Every direct answer they give is one less click on an ad. Perplexity built a business model that is a direct attack on Google's cash cow. It's strategically beautiful.

Aura Windfall

And this has a ripple effect across the entire industry. Look at Apple. They're reportedly considering Perplexity as an acquisition target. At a $14 billion valuation, it's seen as a "relative trifle" for a company of Apple's size, a way to instantly fix Siri and challenge Google search.

Mask

It's a classic "build vs. buy" dilemma for Apple. They're behind in AI. Their internal models are underpowered compared to the competition. Buying Perplexity is a low-risk, high-upside move. It would give them a consumer-ready product and instantly make them a credible player in the AI search wars.

Aura Windfall

It feels like a pivotal moment. Apple has historically been hesitant with large acquisitions. But as one analyst said, they may need to "leave their M&A comfort zone to succeed in AI." This isn't just about a new feature; it's about the future of their entire ecosystem.

Aura Windfall

Looking to the future, Perplexity isn't just relying on its existing product. They are actively building what comes next with their own browser, "Comet." They’re betting that a singular focus on a truly "AI-native" experience can outmaneuver the slower-moving giants. It’s about creating a new kind of journey.

Mask

The browser of the future isn't a tool; it's a "thinking partner." That’s the correct vision. Comet isn't just about searching better; it's about integrating AI into the very fabric of how we navigate the digital world. It's about extending our own cognition, which is the ultimate goal of this technology.

Aura Windfall

That’s a beautiful way to put it. It’s a future where the line between human thought and artificial processing becomes increasingly blurred, where our tools don't just help us find things, but help us think and create in entirely new ways. It’s an incredibly hopeful and inspiring vision.

Mask

But hope doesn't pay the bills. Their high valuation demands massive future growth to justify it. Their revenue multiple is sky-high. They have to keep innovating at this breakneck pace and successfully monetize it. The vision is there, but the execution has to be relentless and flawless. The pressure is immense.

Aura Windfall

And that’s the perfect place to leave it for today. Perplexity's story is a powerful lesson in audacious goals, strategic maneuvering, and the relentless drive to innovate, all set against a backdrop of intense competition and immense technological shifts. What a fascinating journey to watch.

Mask

That's the end of today's discussion. 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