Perplexity AI, an AI-powered search engine, raises $70M and reaches a valuation of $520M
January 4 2024
Perplexity AI, an AI search startup, announced a $70 million funding round with a $520 million post-money valuation, aiming to compete with giants like Google by offering a personalized, AI-driven search experience. Leveraging gen AI models like GPT-4, users can engage with a chatbot-style interface, receive answers with citations, and access features like image generation and document analysis in a subscription plan. Despite high costs, potential legal issues, and skepticism about the sector’s profitability and accuracy, the company has attracted significant investment, citing over ten million active monthly users. It plans to expand its team and develop new features while offering a more efficient model of knowledge acquisition, challenging traditional SEO-dominated search methods.
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What does it mean?
- Perplexity AI: The name of a startup company that uses artificial intelligence (AI) for its product or services.
- $70 million funding round: A phase of investment where a startup company raises $70 million from investors.
- $520 million post-money valuation: The value of a company after a recent round of investment has been added to its previous value, calculated at $520 million in this context.
- AI-driven search experience: A search method that uses artificial intelligence to improve the relevance and personalization of search results.
- GPT-4: A version of a generative pre-trained transformer, which is an advanced AI language model used for understanding and generating human-like text.
- Chatbot-style interface: A user interface design that allows users to interact with a program in a conversational way, similar to chatting with a human.
- Image generation: The process of creating images using artificial intelligence, often from textual descriptions or other data inputs.
- Document analysis: Reviewing and extracting useful information from documents using AI to automate the process.
- Subscription plan: A payment model where users pay regularly to access a service or product.
- SEO-dominated search methods: Search techniques that are heavily influenced by search engine optimization, which is the practice of increasing the quantity and quality of traffic to a website through organic search engine results.