Perplexity AI, a notable player in the artificial intelligence search engine market, is reportedly nearing the completion of a $50 million venture fund targeted at early-stage AI startups. According to sources familiar with the situation, the company will serve as an anchor investor for the fund, with the majority of financing expected to come from external limited partners.
The fund will be managed by Kelly Graziadei and Joanna Lee Shevelenko, who have previously been associated with the early-stage investment firm f7 Ventures. An official filing with the SEC indicates that the fund, named Perplexity F7 Fund I, is in the process of raising the aforementioned amount.
Perplexity AI has gained prominence amid the generative AI boom that began in late 2022, spurred by the launch of OpenAI's ChatGPT. Reports suggest that Perplexity is approaching a significant funding round of $500 million, positioning the company with a valuation of approximately $9 billion. This places Perplexity in competition with established search engine giants like Google, as more users begin to utilize AI for online information retrieval.
In addition to its investment initiatives, Perplexity recently expressed interest in merging with TikTok's U.S. operations, a move that comes as the social media platform faces regulatory challenges in the United States. The company's extensive network, which includes around 80,000 developers, provides it with insight into potential investment opportunities, particularly regarding active users of its application programming interface (API). Founders and investors of Perplexity are contributing to the fund, with some commitments being made in the form of company stock.