AI-based search engine developer Perplexity is launching another funding round at a $20 billion valuation, representing a $2 billion increase from the company's July 2025 valuation of $18 billion, Business Insider reported on August 13, 2025. The startup, founded in 2022, has seen its value rise dramatically, from just $520 million in January 2024—a 3,746% increase in merely a year and a half—while its annual recurring revenue surpassed $150 million by mid-2025, more than quadrupling from $35 million a year earlier.
The significant valuation growth came as Perplexity made an unsolicited $34.5 billion offer to purchase Google's Chrome browser, which the company planned to finance as a cash offer backed by investors. The Chrome bid occurs in the context of an ongoing antitrust case where a US court could force Google to divest the browser to reduce its dominance in the search market, with several other technology companies including OpenAI also expressing interest in the product. Perplexity has already launched its own AI-powered browser called Comet in July 2025, signaling the company's ambitions in the browser and search market.
Perplexity has raised approximately $1.5 billion from investors including SoftBank, Nvidia, and Jeff Bezos, while growing its monthly active users to 22 million according to DemandSage data. The company's significant growth and rapid valuation increase is unprecedented in today's market, indicating investors' growing confidence in the future of AI-driven search technologies. Though the success of the Google Chrome offer remains uncertain, as Google has not indicated any intention to sell, Perplexity has garnered significant media attention, with some analysts viewing it as a smart marketing move that could help the company with fundraising, talent attraction, and user attention.
Sources:
Rebecca Torrence
