AI startup Perplexity to triple valuation to $9 billion in new funding round

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Subscribe to enjoy similar stories. Perplexity is finalizing a new funding round that would value it at $9 billion—triple its valuation from just a few months ago—the latest sign of continued investor excitement for artificial intelligence startups. The AI-powered search company is set to raise $500 million, according to people familiar with the matter.

The venture firm Institutional Venture Partners, which also holds a board seat in the startup, will lead what would be Perplexity’s fourth funding round this year. The funding round would turn Perplexity into one of the most valuable young AI startups to emerge out of the generative AI boom. It was valued at just $520 million at the start of this year.

The Wall Street Journal reported in October that Perplexity was in talks for a new funding round that would value it at $8 billion or more. Perplexity, which provides answers to questions based on information it gathers from searching the web, has been widely criticized by news companies for using their reporting without fair compensation. Wall Street Journal parent company Dow Jones recently sued Perplexity and the New York Times sent it a “cease and desist" notice.

Perplexity Chief Executive Aravind Srinivas said at The Wall Street Journal’s Tech Live conference last month that he wants to reach revenue-sharing partnerships with news publishers. The company also said it would defend itself against the lawsuit. Write to Berber Jin at berber.jin@wsj.com