Perplexity AI’s potential value could reach $3 Billion. Find out why!

Perplexity AI’s most recent big fundraising event may be quickly surpassed by an even bigger one. The startup raised $62.7 million at a valuation of just over $1 billion. However, a raise of up to $250 million at a valuation that is 2.5 to three times higher could quickly crush that amount.

What is going on? The company is experiencing rapid growth in sales, reportedly generating around $20 million in recurring sales annually. Even though $1 billion is 50 times the company’s revenue, investors might not be so crazy after all if it’s growing fast enough. Even though they often lose bets of that size in 2021, they could pay up to 150 times the company’s current annualised revenue.

Perplexity’s success signals new era for AI Startups

The excitement around Perplexity is a big deal because it shows that some startups are doing well enough to get huge amounts of money from venture capitalists. Good. I’ve been worried for a while that the AI boom would only make existing companies richer and not help enough startups grow to create a new class of tech giants. I don’t think that having a permanent class of tech gods is the best way to drive long-term innovation. I also believe that search in general shows what happens when big tech companies don’t compete with each other in a meaningful way.

We saw this week that Amazon, Microsoft, Meta, and Adobe all had news about AI. This made us remember that Big Tech is going to try to steal the AI moment. To use a bad Star Wars analogy, one of our main hopes is that Microsoft or Alphabet won’t just add another trilly to their market cap.

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Kiera Collins

https://theaiwired.com/