Group 1 - Perplexity AI has proposed a $34.5 billion acquisition of Google's Chrome browser to challenge Google's dominance in the online search market [1][2] - The proposed acquisition amount exceeds Perplexity's current valuation, which reached $18 billion in July, up from $14 billion a few months prior [2] - There is increasing concern regarding the threat posed by artificial intelligence to Google, highlighted by a reported decline in Google search traffic from the Safari browser [2] Group 2 - Perplexity AI is known for its AI search engine that provides simple answers to user queries and links to original web sources [2] - The company recently launched its own AI browser named Comet [2] - Earlier this year, Meta had discussions with Perplexity regarding a potential acquisition, but no final agreement was reached [2]

Core Insights - Perplexity, a startup, has reached a valuation of $18 billion following a new funding round, raising $100 million [1][2] - The company has become one of the most recognized firms leveraging generative AI to reshape core internet services since its establishment in 2022 [2] - Perplexity's valuation has seen significant growth, jumping from $1 billion to $3 billion in 2024, and then tripling again shortly after [2] Funding and Valuation - The recent funding round is an extension of a previous round where the company was valued at $14 billion [1][2] - The new capital injection has allowed Perplexity to return to its initial valuation target of $18 billion [3]

Core Viewpoint - Perplexity AI is in early talks for a new funding round that could double its valuation to $18 billion, aiming to compete with Google in the AI search engine market [1][2]. Funding and Valuation - The company is discussing raising between $500 million to $1 billion in this funding round, with negotiations still in the early stages [2]. - Previously, Perplexity was reported to have received funding offers at a valuation of $15 billion [3]. - Founded in 2022, Perplexity's valuation surged from $1 billion to $3 billion in 2024, reflecting strong investor interest in the AI sector [3]. Business Model and Services - Perplexity offers both paid and free versions of its search tools, along with additional services such as internal document search and financial query tools for stock prices and earnings data [3]. - The company currently has an annual recurring revenue (ARR) close to $100 million and reported over 15 million active users as of last March [4]. Competitive Landscape - Perplexity faces increasing competition in its core search business from Google and OpenAI, which launched a search product for all ChatGPT users last year [4]. - The company has received backing from notable investors, including SoftBank's Vision Fund 2, NVIDIA, and Jeff Bezos, although it is unclear which investors are participating in the new funding round [4].