Jeff Bezos, Nvidia, and IVP invested $73.6m in San Francisco’s Perplexity AI, an AI-powered search tool. In 2023, the company handled over 500 million requests and wants to hire additional personnel and develop new products. Perplexity competes with Google in online search despite its tremendous growth.
Recent financing for Perplexity AI totaled USD 73.6 million. Nvidia and Jeff Bezos invested in the round led by IVP. This fundraising round raised Perplexity AI’s valuation to USD 520 million, the company said.
Aravind Srinivas’ Perplexity AI develops AI-powered search tools using OpenAI and Meta’s Llama large language models (LLMs). Their search function provides immediate responses with sources and citations. NEA led a USD 25.6 million fundraising round for the firm in March of the previous year.
Perplexity CEO Aravind Srinivas wrote in his blog that IVP led the round with continued support from Seed and Series A investors NEA, Elad Gil, Nat Friedman, and Databricks, as well as new investors NVIDIA, Jeff Bezos (through Bezos Expeditions Fund), Tobi Lutke, Bessemer Venture Partners, Naval Ravikant, Balaji Srinivasan, Guillermo Rauch, Austen Allred, Factorial Funds, and Kindred
The San Francisco-based startup handled over 500 million requests in 2023 while spending nothing on marketing. Perplexity AI generates single-digit million revenue annually despite its success. However, with the new funding, the business wants to hire more people and accelerate product development.
Perplexity AI currently employs 38 individuals and aims to have 60 by year’s end. According to Similarweb data, the startup’s website and mobile web saw 45 million visitors in December, up from 2.2 million when it began in December 2022.
While business-to-business and developer-related AI capabilities are exciting, AI will also change how we acquire information. Perplexity is one of the few consumer AI products to surpass 10 million MAUs, leading this transition. I am thrilled that Perplexity is NVIDIA’s first consumer investment from our corporate arm because they will become the go-to site for trusted information “NVIDIA VP of Applied Research Jonathan Cohen remarked.
Perplexity AI faces tough competition in the online search sector, where Google holds 90% market share, despite its tremendous rise.
Conclusion
San Francisco-based AI-powered search tool Perplexity AI raised $73.6 million headed by venture financing company IVP. Nvidia and Jeff Bezos invested in the round, raising its valuation to USD 520 million. Perplexity AI, founded by CEO Aravind Srinivas, develops AI-powered search solutions leveraging OpenAI and Meta’s Llama. Despite growing rapidly, the company handled over 500 million requests in 2023 without making a profit. Perplexity AI will hire more people and accelerate product development with the money. The company’s website and mobile web saw 45 million views in December.
