Perplexity AI Inc., an artificial intelligence company building a search product that aims to compete with Google, is in early talks to raise funding from investors at a valuation of about $9 billion, according to a person familiar with the matter.
The company is seeking to raise more than $500 million in the funding round, according to the person, who asked not to be identified discussing private information.
The new valuation, which includes the amount the company would raise, could triple its previous value of $3 billion from a funding round earlier this year. However, the discussions are still early, and the details could change, or talks could fall apart. The company declined to comment.
Perplexity's valuation has soared in recent months, reflecting venture capitalists' intense interest in backing AI companies. As recently as April of this year, the startup was valued at just $1 billion. Its peers and rivals have also raised large sums - including OpenAI, which completed a $6.6 billion financing at a $157 billion valuation earlier this month.
Perplexity's latest funding talks materialized after investors approached the company, the person said, not because the startup had set out to raise new cash.
Perplexity offers several services in addition to the paid and free versions of its search tool. It recently launched a product that allows organizations to search internal files alongside the internet and introduced new features for finance-related searches - including stock prices and company earnings data.
The company has also launched an array of revenue-sharing partnerships with major publishers, even as it has faced accusations of plagiarism from some news outlets.
Investors in the company include SoftBank Group Corp.'s Vision Fund 2, Amazon.com Inc. founder Jeff Bezos and Nvidia Corp.
The Wall Street Journal earlier reported on the deal talks.