California-based AI search startup Perplexity AI has reportedly secured US$200 million in new funding.
The latest investment values the company at US$20 billion, according to multiple media reports late on Wednesday (September 10).
The Information first reported the financing, citing sources familiar with the matter.
That report noted that Perplexity has raised funds roughly once every two months over the past year, with total funding now exceeding US$1 billion.
Perplexity was valued at US$14 billion following a funding round in March, with its valuation climbing to US$18 billion after raising a further US$100 million in July.
This latest round comes after Perplexity last month bid to acquire Google’s Chrome browser for US$34.5 billion.
The move would have allowed its Comet browser to better compete with the likes of OpenAI.
The offer followed a proposal by the Justice Department that Google sell Chrome as part of a remedy in its antitrust case.
A federal judge recently ruled that Google did not need to break up its search business, meaning it will retain Chrome.
The emergence of AI-driven search tools such as Perplexity, OpenAI’s ChatGPT, and Google’s AI Overviews has given rise to the concept of generative engine optimisation, or GEO.
“Businesses now face a two-front battle: keep their place in traditional search while ensuring AI systems recognise and cite them as authoritative answers,”
the report stated.
“Whether one calls it SEO, GEO, or simply good content, the playbook for staying visible is changing fast, and the cost of sitting out is invisibility.”
As companies observe declining click-through rates, they have little choice but to adapt to an era in which AI provides complete answers to user queries.
Featured image credit: Edited by Fintech News Switzerland, based on image by suriyawutsuriya via Freepik
