Perplexity AI seeks $500 million funding at $8B valuation
What's the story
Perplexity AI, an artificial intelligence (AI) firm backed by Jeff Bezos and NVIDIA, is reportedly in talks to raise around $500 million in a new funding round.
The news comes from the Wall Street Journal, which cited sources familiar with the matter.
The fundraising efforts would more than double the company's valuation from $3 billion to over $8 billion.
Projection
Revenue and recent controversies
The Wall Street Journal's report also noted that Perplexity AI's projected yearly revenue, based on recent sales, is around $50 million. However, the company has refused to comment on these numbers.
Back in October, the New York Times sent a "cease and desist" notice to Perplexity AI for using its content for generative AI purposes.
Content usage
Response to plagiarism accusations
Perplexity AI has been accused of content plagiarism by media outlets like Forbes and WIRED.
To counter these allegations, the firm has launched a revenue-sharing program to address some of the concerns raised by publishers.
The AI firm's search tools, powered by large language models (LLMs) from OpenAI and Meta's open-source model Llama, give users immediate answers to queries with sources and citations.