Perplexity ARR hits $150M

Perplexity, an AI search startup founded in 2022, has achieved an impressive annual recurring revenue (ARR) of over $150 million as of mid-2025. This marks a significant increase from approximately $35 million in ARR just a year earlier, reflecting the company’s rapid growth and the increasing demand for its innovative search solutions.

The company’s core product combines large language models with web search to provide real-time, conversational answers to user queries. This approach offers a more direct and informative alternative to traditional search engines, enhancing user experience by delivering precise information quickly. Perplexity’s platform has gained traction among users seeking more efficient and accurate search capabilities.

In terms of financial backing, Perplexity has raised approximately $1.5 billion to date, with notable investors including SoftBank, Nvidia, and Jeff Bezos. The company’s valuation has surged to $20 billion, up from $18 billion in July 2025 and a mere $520 million in January 2024. This rapid increase underscores investor confidence in Perplexity’s potential to disrupt the search engine industry.