Microsoft, X, OpenAI Discussed Buying Perplexity
Perplexity, the AI-powered search engine startup that is reportedly raising a new round at a valuation of at least $8 billion, was a hot acquisition target last year, The Information reported Friday. X, Notion, and OpenAI all approached Perplexity with acquisition offers of between $150 million and $200 million, while Microsoft also expressed interest.
Last year’s feeding frenzy showed that tech giants were bargain shopping, as Perplexity was valued at $150 million after a funding round in March that year. The suitors had reason to think Perplexity might look to exit, given the high computing costs associated with running the search engine. Neeva, a highly-touted AI search startup that failed to gain many subscribers, was acquired by Snowflake in May last year for around $180 million.