How Indian-Origin Founder Aravind Srinivas Built Perplexity Into An 18 Billion Dollars Google Challenger

Perplexity: Perplexity CEO Aravind Srinivas is steering the AI startup toward becoming a full-stack challenger to Google, with an 18 billion Dollars valuation to prove it. Artificial intelligence search startup Perplexity has reached an eye-popping 18 billion Dollars valuation, marking a dramatic surge in investor interest in the generative AI space.

The company, founded just three years ago, was valued at 14 billion Dollars only two months ago, and has now added 4 billion Dollars more after additional backers joined in post-funding round. Since early 2024, the company’s valuation has leapt from 500 million Dollars to 18 billion Dollars, reflecting the rapid maturation and monetisation of AI-powered tools.

Taking On Google And Big Tech

Perplexity, co-founded by Indian-origin CEO Aravind Srinivas, is setting its sights on Google’s long-held dominance in internet search. What began as a conversational AI search engine has evolved into a more expansive ecosystem. The company recently launched “Comet,” an AI browser for premium users, capable of understanding and responding to voice and text commands to carry out everyday digital tasks — from summarising feeds to online shopping and drafting emails.

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“The endgame is the browser and agents that not only do stuff but also pull all of the context in," Srinivas told the Financial Times earlier this year. This signals a shift from AI being merely query-responsive to becoming a context-aware digital assistant, a leap toward redefining how users interact with the web.

Revenue Soars, Subscriptions Drive Growth

Perplexity’s revenue has mirrored its valuation trajectory. From an annualised revenue of 35 million Dollars in August 2023, it has jumped to 150 million Dollars in recent months. The company earns primarily through a tiered subscription model, with pricing ranging from 20 Dollars to 200Dollars per month. What sets Perplexity apart is its early adoption of advertising and ecommerce integration within its AI platform — something most chatbot companies are only beginning to explore.

Backed By Tech’s Biggest Names

Perplexity’s investor lineup reads like a who’s who of global tech:

Nvidia, SoftBank’s Vision Fund 2, New Enterprise Associates, IVP, Amazon’s Jeff Bezos, and Meta’s Yann LeCun. Despite this momentum, the company operates in a space dominated by powerful incumbents like Google, OpenAI, and Anthropic. Yet, the consistent rise in valuation and traction with users and investors alike suggest Perplexity may hold a meaningful stake in the future of search.

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While some speculate that Perplexity could become a takeover target — with Apple and Meta reportedly interested— CEO Srinivas remains clear about his goals: he wants to take the company public.