AI search startup Perplexity is rapidly climbing the valuation ladder. Recent reports suggest the company has raised $200 million at a $20 billion valuation, following earlier talks to secure up to $1 billion at $18 billion.
Perplexity’s growth is backed by strong momentum, with annual recurring revenue reaching around $100 million. The company is expanding beyond simple AI search, developing enterprise tools and an experimental browser project, Comet, that blends search and assistant features.
The surge reflects broader investor confidence in AI search, a market where giants like Google and Anthropic are also pushing forward. However, competition, execution risks, and the challenge of sustaining profitability remain key hurdles.
For now, Perplexity stands out as one of the fastest-rising players, positioning itself at the center of the race to redefine how people search and interact with information.
