Perplexity AI, an artificial intelligence search startup, is reportedly on the brink of securing a funding round that would value the company at a whopping $1 billion. The Wall Street Journal has reported this impending deal, however, the exact details of the new funding haven’t been disclosed.

This is an astronomical leap from the company’s estimated $520 million valuation just two months ago, after closing a $73.6 million Series B funding round. This previous round saw participation from multiple firms, including renowned technologist Jeff Bezos and the technology-focussed company Nvidia.

Perplexity’s doubled valuation within such a short time frame showcases the solid faith and support investors presently have in AI technology, irrespective of its evaluation. Only last month, AI cloud computing startup Lambda, based in San Jose, raised $320 million at a $1.5 billion valuation.

Likewise, San Francisco’s Sierra, a conversation-based AI entity, garnered $110 million and was reportedly valued at close to $1 billion. Also, Chinese AI startup Moonshot AI raised over $1 billion last month under the leadership of Alibaba Group Holding and HongShan.

Last March, Perplexity AI had successfully raised a $25.6 million Series A round and had been predicted to grow considerably in the eyes of investors due to the significant recent developments in AI technology. The startup has managed to go above and beyond these expectations, reportedly exceeding $10 million in annual revenue recently.

Interestingly, investors are willing to back a young company such as Perplexity in the challenging task of taking on a tech titan like Google. The San Francisco-based startup aims to fill the gap left by web search inadequacies. Perplexity AI allows users to input simple search queries and receive direct responses generated via its own AI; this allows users to bypass the clutter of ads, paid placements, and SEO-enhanced results.

However, Perplexity is not the only company to measure up against Google – Microsoft has been a major rival for years. The next stages will reveal if Perplexity’s venture into the search realm will yield a different outcome.

Source: Perplexity Poised To Become Latest AI Startup To Hit Unicorn Status — Report.