(Bloomberg) -- Perplexity AI Inc. , an artificial intelligence firm developing a search product designed to rival Google, is in preliminary discussions to secure funding from investors, targeting a valuation of approximately $9 billion, as reported by a source familiar with the situation. The company aims to raise over $500 million in this funding round, according to the insider, who chose to remain anonymous due to the confidentiality of the information. This new valuation, which factors in the funding amount, could represent a significant increase from its earlier valuation of $3 billion achieved in a funding round earlier this year. However, since the conversations are still in the early stages, details may shift, or negotiations could potentially collapse. The company did not issue a comment regarding these discussions. Perplexity’s valuation has risen sharply in recent months, mirroring the strong interest from venture capitalists in AI firms.

Back in April, the startup was valued at just $1 billion. Its competitors have also attracted substantial funding — for instance, OpenAI recently completed a $6. 6 billion financing round at a valuation of $157 billion. The current funding discussions arose after investors reached out to Perplexity, rather than the startup actively seeking new capital. In addition to its free and paid search tool versions, Perplexity offers various services. Recently, the company introduced a product enabling organizations to search both internal documents and the web, along with new features focused on finance-related queries such as stock prices and earnings data. The firm has also established multiple revenue-sharing partnerships with major publishers, despite facing allegations of plagiarism from certain media outlets. Notable investors include SoftBank Group Corp. 's Vision Fund 2, Amazon founder Jeff Bezos, and Nvidia Corp. The Wall Street Journal previously reported on the funding discussions.