AI startup Perplexity, backed by Amazon.com, Inc. founder Jeff Bezos, is set to triple its valuation in its fourth funding round this year.

What Happened: Perplexity is finalizing a funding round that would see its valuation skyrocket to $9 billion, an increase from its valuation of $520 million at the start of the year.

The AI-powered search company plans to raise $500 million, with Institutional Venture Partners leading the round, reported the Wall Street Journal, citing people familiar with the matter.

The funding comes amid increased competition from ChatGPT-parent OpenAI and Alphbaet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, both of which have introduced AI-powered features in their search engines.

Last month, OpenAI secured more than $6.5 billion in new funding at a valuation of $157 billion.

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Why It Matters: In April 2024, Perplexity became a unicorn after a funding round that more than doubled its valuation to over $1 billion. By August, the startup's revenue and usage had grown 700% since the start of the year.

Last month, Perplexity introduced new features aimed at improving user experience and breaking the duopoly of Google and Meta Platforms in the search and advertising industry.

However, the AI startup, which provides answers to questions by searching the web, has also faced criticism from news companies for using their reporting without fair compensation.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.