AI Search Engine Perplexity Plans to Raise Funds at a $20B Valuation — Business Insider

[nihalsari]

At the end of 2024, media reports valued the service at $9 billion.

Business Insider learned of the fundraising plans from a letter sent to potential investors. The exact amount sought is undisclosed, but the potential valuation is set at $20 billion—$2 billion higher than in July 2025, when the AI search company reportedly raised $100 million. By comparison, in December 2024, investors valued the startup at $9 billion.

Founded in 2022, Perplexity develops an AI-powered search assistant that provides information along with source citations. The service offers both a free tier and a paid subscription priced at $20 per month.

[Maxwell]

From $9B at the end of 2024 to a potential $20B valuation less than a year later — that’s insane growth. Shows how hot the AI search space is, but also how much investor faith there is in alternatives to Google.

[rafihasan]

The $20/month subscription is interesting. If Perplexity can prove real utility beyond free search, it could build a sticky, high-margin business. The challenge is whether enough users will pay when free AI tools keep getting better.

[Nahiar806]

Citations and transparency are Perplexity’s biggest differentiators. If they keep scaling responsibly while others chase hype, that valuation might not just be inflated , it could be justified.