Perplexity Nears $9 Billion Valuation in Investment Led by IVP

Institutional Venture Partners is in talks to lead a $500 million investment in Perplexity, which has developed an artificial intelligence-powered search engine that competes with Google, according to two people with knowledge of the deal. The company is set to raise the round at a $9 billion valuation, triple the valuation from a round earlier this year.

The new round, which is close to being complete, would be Perplexity’s fourth round of funding this year, which is unusual even in the frenzy of artificial intelligence fundraising. IVP has already made several investments into Perplexity, including leading its Series B last year. The pace of funding underscores the intense capital demands of building an AI company and investors’ willingness to fund those bets.