Perplexity rating jumps to $20 billion with latest funding

The confusion that Business Insider learned is increasing yet another funding.

According to an email sent to prospective investors seen by BI, AI search engines are seeking new funding at a post-money valuation of $20 billion, a source of knowledge about pay raises.

A confused year has been a busy year. It has become one of the hottest AI startups funded by investors such as SoftBank, Nvidia and Jeff Bezos. Perplexity just placed a $34.5 billion bid on Google's Chrome browser earlier this week, fighting against analysts who are urging Apple to buy a startup that has been booming for months.

The new valuation represents a $2 billion jump from Perplexity's recent $18 billion valuation, as originally reported last month, in its latest funding round in July. This comes from a $520 million valuation in January 2024.

Meanwhile, Perplexity's business has skyrocketed. In 2022, the startup, which combines large language models and web searches to provide real-time answers to user questions, had increased annual revenues of over $150 million by mid-2025.

Jesse Dwyer, director of communications confusion, said the confusion is currently making more than $150 million. He did not answer any further questions for this story.

Perplexity faces fierce competition from big tech giants like Google (startups announced their own AI-Native browser comet last month).

It's not clear who is trying to lead the latest funding round. The embarrassment has raised about $1.5 billion so far, according to Pitchbook.

While a $20 billion valuation baffle is sought, the lift that makes sense for the company is yet to approach the $34.5 billion baffle that was offered to buy Chrome from Google this week. Google has not shown any intention to sell its browser, despite pressure from the Department of Justice to sell Chrome to antitrust concerns. Perplexity told the Wall Street Journal that it received funding transactions from several investors, including large venture capital funds, but did not disclose the names of those investors.

Many people have rejected this bid as just a marketing stunt.

“They look like big players and are attracting the attention of their fundraising, talent and users by staying in the news cycle,” said the VC, who is not a puzzled investor.

Rumors are also baffling that iPhone makers can make deals with Apple as they fall behind in AI races.

Dan Ives, managing director and equity research analyst at Wedbush Securities, said gaining confusion should be a “easy deal” for the tech giant. “For Apple, the time is ticking by,” he told Bi. Dwyer said at the time that the team was “unaware of the confusing M&A debate.”