“Serve the world’s curiosity”

Perplexity, founded in 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski, is an AI-native answer engine that transforms how users search for and consume information online. Unlike traditional search engines that return a list of links, Perplexity delivers direct, conversational answers backed by real-time web data and clear citations. The platform leverages large language models to interpret user queries and summarize current, relevant sources, ensuring responses are accurate, up-to-date, and easy to understand. Designed for both casual and professional users, Perplexity streamlines research and discovery by combining the power of AI with trustworthy, verifiable information.

Business Model

Perplexity uses a freemium subscription model that is intended to satisfy the requirements of both enterprises and customers as individuals. Unlimited basic searches and restricted access to advanced capabilities are provided by its Free tier, while the Pro plan, which costs $20 a month, allows 600 Pro searches every day using cutting-edge AI models like GPT-4 Turbo and Claude 3, as well as file uploads and monthly API credits. With features including team management tools, single sign-on (SSO), improved data privacy, and variable pricing (with small teams paying $40 per seat and larger enterprises requiring custom contracts), the company introduced an Enterprise service in 2024 that was specifically designed for business customers. Clients already include the Cleveland Cavaliers, Zoom, Nvidia, and Databricks. Moving away from its initial ad-free position, Perplexity also revealed plans to implement advertising, marking a significant strategic change. In order to make monetization a crucial component of its long-term business strategy, leadership stressed that generative AI will allow for smarter, more relevant ad experiences.

Competitive Edge

Perplexity AI holds a competitive edge through its distinct integration of real-time web searching and AI-driven answer formulation, complete with clear source citations. In contrast to conventional search engines that simply present lists of links or AI helpers that depend on fixed training data, Perplexity has established a notable niche by providing conversational and current responses that explicitly credit trustworthy sources. The platform effectively connects Google's extensive web indexing with ChatGPT's conversational capability, giving users both the immediacy of live web information and the ease of natural language communication. Perplexity is continually evolving by broadening its specialized search features across different fields while still excelling in general web search, establishing itself as the preferred choice for users seeking both accurate and up-to-date information. By merging the dependability of referenced sources with the ease of AI-generated summaries, Perplexity AI leads the charge in the next wave of search innovation—changing the way individuals find, confirm, and engage with information in a more intricate digital environment.

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Targeted Impact

Perplexity AI enhances informed decision-making by providing precise, accessible knowledge to advance society and the environment.

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What Comes Next?

Perplexity AI is growing into specialized domain AI, boosting multimodal features, and aiming to lead in the AI search market.

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Who will benefit?

Perplexity AI benefits students, professionals, researchers, tech firms, e-commerce, education, healthcare, and financial services.

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Perplexity AI's Timeline

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Prominent News

Perplexity, PayPal team up on agentic commerce , May 15, 2025 - PayPal and Perplexity, an AI firm, have partnered to incorporate agentic commerce into Perplexity Pro.  Click here to read more.

Perplexity AI Eyes Launching Browser to Challenge Google, May 12, 2025 - The potential value increase coincides with Perplexity AI preparing to launch its own web browser, Comet, and Apple considering integrating the startup's artificial intelligence (AI) search capabilities into Apple's Safari browser. Click here to read more.

Wiley (WLY) Partners with Perplexity for AI-Enhanced Educational Access | WLY Stock News, May 08, 2025 -  Perplexity and Wiley (WLY, Financial) have partnered to improve the way Perplexity's generative AI search technology incorporates Wiley's information.  Click here to read more.

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Return on Investment (ROI)

ROI computed as of May 19, 2025.

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Funding Round in USD

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Series D Valuation

<span class="date">2024-11-09</span>
<span class="value">$9.00B</span>

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Implied Valuation

<span class="date">2025-05-19</span>
<span class="value">$10.32B<span>

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Change Since Last Round

<span class="date">2024-11-09 → 2025-05-19</span>

<span class="value green">+14.69%</span>

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Quarterly Bid:Ask Volume Ratio

PM Insights highlights the quarterly bid:ask volume ratio where there were at least three institutionally-sized broker contributions within that period.

During Q2 2024, Perplexity AI recorded its highest combined bid and ask volume at $137M. In Q1 2025, Peplexity AI’s volume was almost entirely driven by the ask side, whereas in Q3 2024, 65% of the volume shifted to the bid side.

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Quarterly Bid to Ask Spread

The plot below illustrates the quarterly average bid-to-ask spread. Perplexity AI's bid-ask spread reached its highest point at 18.88% in Q1 2025, while it recorded its lowest spread at 15.67% in Q2 2024 and Q3 2024.

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