AI startup Perplexity hits unicorn status as it challenges Google
Perplexity, an emerging startup in the artificial intelligence (AI) search field, has raised approximately $63 million in its latest funding round. This substantial financial boost has catapulted the company's valuation to over $1 billion. Despite having a relatively small team of 55 members, the venture has managed to attract significant attention from both investors and users. This growing interest reflects the rising enthusiasm for generative AI products that are transforming fundamental internet services such as search.
Who contributed to Perplexity's funding round?
Among the contributors to Perplexity's funding round were billionaire Stanley Druckenmiller, Y Combinator CEO Garry Tan, and Figma Inc. CEO Dylan Field. The round was by led by Daniel Gross, an American entrepreneur, AI engineer, and notable investor in companies like Uber, Instacart, and GitHub. Previous backers such as Amazon's founder Jeff Bezos and NVIDIA also participated in this round. Their collective support has played a crucial role in the company's rapid financial growth over a short period of time.
Take a look at Srinivas's post
Perplexity's chatbot has processed nearly 75 million user queries
Founded less than two years ago by Johnny Ho, Aravind Srinivas, and Denis Yarats, Perplexity has quickly gained recognition for its innovative AI chatbot. The ChatGPT-powered chatbot, which summarizes search results and provides citations for its responses, has distinguished the company in a competitive market. High-profile users like NVIDIA CEO Jensen Huang reportedly use the product "almost every day." This year alone, Perplexity's chatbot has processed nearly 75 million user queries in the US.
Perplexity generates $20 million in annual recurring revenue
Perplexity currently generates $20 million in annual recurring revenue from both free and premium versions of its service. To increase revenue, the startup is launching a new enterprise version of its chatbot, priced at $40 per month. This version offers enhanced security and data protection features. Early adopters include Bridgewater Associates, Zoom, and the Cleveland Cavaliers. "We want to get Perplexity in the hands of every single company in the United States," said Srinivas, CEO of Perplexity.
Perplexity has secured distribution partnerships with SoftBank and Deutsche Telekom
In a bid to expand its user base globally, Perplexity has secured distribution partnerships with Japan's SoftBank and Germany's Deutsche Telekom. These partnerships will enable the startup to market its service to over 300 million users worldwide. Some of these users will be offered a free one-year subscription as part of the company's global outreach strategy. Despite its achievements, Perplexity remains significantly smaller and less capitalized than competitors like ChatGPT-maker OpenAI and Google.
