Google Challenger Perplexity Promises Booming Growth, Rosy Margins

Google Search challenger Perplexity AI recently projected it will more than double its annualized revenue in 2025 to $127 million, implying it would be generating $10.5 million per month, according to three people who have seen the projections. Perplexity also projected it would quintuple annualized revenue to $656 million by the end of the following year as it tries to lure millions of people to pay for subscriptions for its search service, one of those people said.

The startup, which operates an artificial intelligence–powered search and chatbot service, disclosed the projections as part of a pitch to investors as it tries to raise $500 million in a deal led by venture capital firm IVP at a $9 billion valuation. It previously raised more than $400 million from IVP and other firms.