Perplexity AI, a startup focused on developing an artificial intelligence search engine, is aiming to significantly increase its valuation to approximately $9 billion in its upcoming funding round, as confirmed by CNBC. Previously valued at $3 billion in June, the company is now targeting to raise around $500 million; however, this amount may vary, according to a source who requested anonymity due to the confidential nature of the discussions. The Wall Street Journal was the first to report on this new funding initiative. At the beginning of the year, Perplexity's valuation stood at about $500 million.

Since then, the company has garnered considerable investor interest amidst the broader surge in generative AI, successfully completing three funding rounds this year. Perplexity is one of many AI startups vying for a share of the lucrative generative AI market, currently dominated by OpenAI, the organization behind ChatGPT. Notwithstanding the excitement surrounding AI developments, Perplexity has been embroiled in controversy, facing numerous allegations of plagiarism from media organizations such as the New York Times, which assert that the company utilizes their content to formulate its responses. Perplexity has refuted these claims.