California-based Perplexity AI, the company behind a leading AI search engine, is close to finalizing a $50 million venture fund aimed at supporting early-stage AI startups, according to sources.
Perplexity AI, led by Arvind Srinivas as the CEO, will serve as the anchor investor for the fund, but the majority of the capital will come from external limited partners.
Kelly Graziadei and Joanna Lee Shevelenko, who have been managing a California-based early-stage fund called f7 Ventures, will serve as the two general partners for Perplexity AI fund. A filing with the US Securities and Exchange Commission in October revealed that the Perplexity F7 Fund I is targeting $50 million in funding, with Graziadei and Shevelenko listed as the general partners.
Perplexity AI has been at the forefront of the generative AI boom, which began in late 2022 with the launch of OpenAI’s ChatGPT. The company has been rapidly growing and was reportedly in the final stages of raising $500 million in funding at a $9 billion valuation, according to a report.
As more consumers turn to AI for online searches, Perplexity AI is emerging as a potential competitor to Google. With its innovative approach to search and AI technology, the company is well-positioned to capitalize on the growing demand for AI-powered search solutions.
Perplexity AI made a bid last month to merge with TikTok’s US operations, as the social media platform faces a potential shutdown in the US.
Perplexity AI has a unique advantage when it comes to investing in startups – stemming from its network of around 80,000 developers. This network provides the company with valuable insights into which developers are actively using its API and consuming its resources, according to the source familiar with the matter.
Perplexity’s founders and investors are backing the fund financially, with part of the company’s commitment being made in the form of company stock, according to the source.
