As reported by NBC and others, Perplexity AI is finalizing talks to secure $500 million in funding led by venture capital firm Accel, which would value the artificial intelligence search startup at $14 billion-a significant increase from its $9 billion valuation in December 2024.
The $500 million funding round currently being negotiated represents the lower end of Perplexity's initial fundraising ambitions. Earlier in March 2025, the company had been exploring raising between $500 million and $1 billion at a potential $18 billion post-money valuation, according to Reuters and CNBC.12
Accel, the Palo Alto-based venture capital firm, is set to lead this investment round, as confirmed by anonymous sources familiar with the negotiations.3 The discussions are in advanced stages but not yet finalized, with The Wall Street Journal first reporting on the details of the late-stage talks.45 This funding will help Perplexity strengthen its position in the competitive AI search market where it faces established rivals like Google and Microsoft-backed OpenAI.6
The AI search startup's valuation has experienced meteoric growth over a remarkably short period. Starting 2024 at just $520 million, Perplexity's value skyrocketed to $3 billion by June 2024, then tripled to $9 billion by December of the same year.12 This rapid ascension continued into 2025, with the company now approaching a $14 billion valuation-representing a staggering 27-fold increase in less than 18 months.34
This growth trajectory reflects extraordinary investor confidence in Perplexity's technology and market potential. While the current $14 billion valuation falls below the $18 billion target discussed in March 2025 funding talks, it still represents a 56% increase from the December 2024 valuation, demonstrating continued strong momentum despite some moderation in expectations.56
Beyond Accel's leadership in the current funding round, Perplexity has attracted an impressive roster of high-profile investors. The Nvidia-backed startup has secured investments from Jeff Bezos (through Bezos Expeditions), IVP, NEA, SoftBank Vision Fund, Databricks Ventures, and Bessemer Venture Partners.12
This strong investor backing reflects broader enthusiasm for generative AI and AI-powered search technologies, with many viewing Perplexity's approach as potentially disruptive to the traditional search engine market.3 The company's ability to attract such significant investment in a competitive landscape underscores investor confidence in its technology and business model, despite the valuation coming in below earlier projections of $18 billion.45
The AI search engine distinguishes itself as an "answer engine" by delivering direct, cited responses to queries rather than just lists of links, positioning it as a significant competitor to Google, ChatGPT, and Gemini.12 With annual recurring revenue reaching $100 million and processing over 400 million search queries monthly, the company has secured a 6.2% market share in the AI search sector as of 2025.3
Apple is reportedly considering integrating the startup's AI search capabilities into Safari, which could substantially boost user adoption and visibility.4 The rapid evolution of AI chatbots has fueled investor enthusiasm for startups offering faster and more detailed responses to user queries, with Perplexity's technology combining natural language processing with real-time web indexing to deliver concise, up-to-date information.13
