Perplexity To Reach A $9 Billion Valuation Amid NTY Controversy

The AI-powered search company Perplexity is set to raise $500 million in a new funding round that would value the company at $9 billion.

According to Reuters, an anonymous source familiar with the matter with the matter confirmed the information.

The rumors of Perplexity raising $500 million had been spreading for the past few days. This time, it has been confirmed that the funding round is being led by Institutional Venture Partners (IVP) and that it is at its final stage.

In January, after a series B funding where the AI startup raised $73.6, the company was valued at $520 million. After multiple funding rounds this year, Perplexity’s valuation has skyrocketed to an estimated $9 billion after this new round deal.

However, the company has engaged in disputes with the New York Times (NYT). Last month, the news company issued a cease-and-desist letter against Perplexity, accusing the startup of plagiarism and copyright violation.

According to Tech Crunch, on Monday, the New York Times tech workers went on strike after the newspaper refused to meet their demands—like an annual 2.5% wage increase and a two-day a week in office requirement, and Aravind Srinivas, Perplexity’s CEO, jumped in the discussion suggesting to help the newspaper replaced workers’ tasks with their AI tool.

“Hey AG Sulzberger @nytimes – sorry to see this. Perplexity is on standby to help ensure your essential coverage is available to all through the election. DM me anytime here,” wrote Srinivas from his verified X account, addressing Arthur Gregg Sulzberger, NYT’s chairman, for his message of being disappointed in the journalists who went on strike during election week.

Many users attacked and criticized Srinivas for stepping on the discussion and offering AI replacement. Perplexity’s CEO had to clarify his intentions: “The offer was *not* to ‘replace’ journalists or engineers with AI but to provide technical infra support on a high-traffic day.”