How Perplexity Became a $1 Billion Google Challenger
Perplexity raised $63M at a $1B valuation on April 23, 2024, becoming the AI-first search engine unicorn backed by Jeff Bezos and Nvidia.
On April 23, 2024, Perplexity AI raised $63 million at a $1 billion valuation, officially becoming a unicorn.
For a search startup to reach this milestone—competing against Google—was remarkable. But Perplexity wasn't just search. It was AI-first search, and that made all the difference.
What Made Perplexity Different
Direct answers: No blue links, just AI-synthesized responses Source citations: Every answer linked to sources Follow-up questions: Conversational search experience Real-time information: Current web data, not training cutoffs
It felt like ChatGPT met Google, but better than both for research.
The Growth
By April 2024:
- 75M queries in the quarter
- $20M annual recurring revenue
- 500K+ daily active users
- Growing 20% month-over-month
Not Google scale, but remarkable for a startup.
The Investors
Jeff Bezos: Personal investment Nvidia: Corporate strategic investment Top VCs: Jeff Bezos, Nvidia, top-tier venture firms
The investor lineup validated the vision.
Where Are They Now?
Perplexity continues growing as an AI search alternative. They've faced some copyright controversies but remain a legitimate Google competitor for certain use cases.
April 23, 2024 proved AI could disrupt even Google's search monopoly—if the approach was truly different.