Perplexity eyes 20B valuation in new funding round

Perplexity seeks a new round at a 20 billion post money valuation as it scales ARR amid intense competition and regulatory headlines.

Perplexity Raises Valuation to 20 Billion in Fresh Fundraise

Perplexity is seeking a new funding round at a 20 billion post money valuation, according to emails to prospective investors and sources. The company has drawn backing from SoftBank, Nvidia, and Jeff Bezos’s investment teams, and this week it floated a 34.5 billion bid to buy Google’s Chrome browser, a move that has drawn scrutiny from analysts and rivals alike.

ARR topped 150 million by mid 2025, more than four times the roughly 35 million recorded a year earlier. To date, Perplexity has raised about 1.5 billion in total funding. The round lead is not disclosed, and questions remain about how the company will balance rapid growth with profitability as it expands from a search oriented AI into broader online experiences.

Perplexity’s latest moves highlight a shift in how AI startups are judged. Growth and real revenue momentum are becoming more important than early promises, and the company’s pace signals bold positioning in a crowded space. Rival tech giants including Google, Apple, and OpenAI are moving fast, turning the AI browser and real time web search into a high stakes arena.

At the same time, the push for big bets runs up against regulatory and investor caution. The Chrome antitrust backdrop and questions about how this funding will translate into durable value place a real ceiling on hype. The coming months will show whether Perplexity can convert attention into lasting growth or whether market skeptics will demand clearer profits and sustainable strategy.

Highlights

The road ahead will test whether hype translates into durable growth.