Perplexity AI, an artificial intelligence startup backed by Jeff Bezos, is reportedly in negotiations to raise funds that could increase its valuation to $8 billion or higher, according to a report from the Wall Street Journal.
The company is aiming to secure approximately $500 million in this new funding round, as confirmed by sources familiar with the discussions. Perplexity AI’s estimated annual revenue is around $50 million, based on recent sales figures.
When approached for comments, Perplexity AI declined to provide any additional information.
In recent news, the startup received a “cease and desist” notice from The New York Times, demanding that it halt the use of the newspaper’s content for generative AI applications. Perplexity has previously faced similar accusations from media outlets such as Forbes and Wired regarding plagiarism. In response to these concerns, the company has initiated a revenue-sharing program aimed at addressing issues raised by publishers.
Perplexity AI offers search tools that provide users with instant answers to their queries, complete with sources and citations. Its technology is powered by various large language models, including those developed by OpenAI and Meta’s open-source model, Llama.
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