Core Viewpoint - Perplexity, a startup focused on AI-driven search engines, is nearing completion of a funding round with a valuation of $14 billion, which is lower than its initial target of $18 billion but represents a significant increase from its previous valuations [1][2]. Group 1: Company Overview - Perplexity was founded in 2022 and has quickly become a prominent startup in reshaping core internet services using generative AI [2]. - The company's valuation surged from $1 billion to $3 billion last year, and then tripled again within months [2]. Group 2: Competitive Landscape - Perplexity faces intense competition in its core search business from major players like Google and OpenAI, which has launched search products for its ChatGPT users [2]. - The company is expanding its offerings beyond paid/free search tools, with plans to launch a browser named Comet, aimed at competing with Google Chrome through enhanced personalization and task orientation [1][2]. Group 3: Financial Performance - Perplexity's annual recurring revenue has reached $120 million, an increase from nearly $100 million reported in March [2]. - Accel is in discussions to lead a $500 million funding round for Perplexity, which is part of a broader effort to raise up to $1 billion at the previously sought $18 billion valuation [1].