Perplexity, a rapidly growing AI search engine, has raised $200 million in a Series E funding round at a $20 billion valuation, with plans to capitalize on the burgeoning demand for AI-integrated search solutions.

Target Information

Perplexity is a rapidly growing AI search engine that has surged to over 230 million monthly active users, approaching an annual recurring revenue (ARR) of $200 million, reflecting a significant year-over-year growth of approximately 400%. As of now, the platform processes more than 780 million monthly queries, demonstrating strong engagement and scalability. Its newly launched Comet browser, globally available for free since October 2025, integrates the AI assistant into various online activities such as web navigation, email, and shopping, reportedly increasing user engagement by six to eighteen times after its introduction.

Backed by a seasoned leadership team with expertise from prominent tech organizations such as OpenAI, DeepMind, and Databricks, Perplexity has carved out a 6.2% market share in the AI search sector. This positions the company as one of the fastest-growing challengers in the competitive landscape that includes heavyweights like Google and Microsoft.

Industry Overview

The AI search market is undergoing a transformative phase, with a global valuation of approximately $18.5 billion in 2025 and a projection to reach $66.2 billion by 2035, representing a CAGR of 14%. This growth is fueled by a sign