Perplexity AI, often viewed as ChatGPT’s competitor, acquired Seattle-based startup Carbon which specializes in connecting AI systems to external data sources, according to the company’s announcement on Dec. 18.
Starting early next year, Perplexity will not just let you search over the web. It will connect to Notion, Docs, Slack, and more. I am excited about the @carbon__ai team joining us to work on this! https://t.co/2S5jvftScd
— Aravind Srinivas (@AravSrinivas) December 18, 2024
CEO Aravind Srinivas said this acquisition will allow Perplexity to search through your files and work messages in Notion, Google Docs, Slack, and other enterprise applications in addition to searching the web, sometime in early 2025.
READ: Aravind Srinivas unveils the secrets behind Perplexity AI’s meteoric rise (December 12, 2024)
Carbon focuses on retrieval-augmented generation (RAG), a technique that enables large language models (LLMs) to retrieve information from external databases before generating a response.
By acquiring Carbon’s technology and staff, Perplexity could be expanding into launching enterprise search products. These tools connect generative AI to enterprise databases, allowing employees to quickly search through the mass of unstructured data their companies have acquired over the years.
“Carbon will make it easier for Perplexity’s answer engine to be informed by diverse sources of information, whether that data resides in internal databases, cloud storage, or document repositories,” said Perplexity in a statement.
After an exceptional funding round earlier this month, the company raised a whopping $500 million led by IVP (Institutional Venture Partners) according to Bloomberg, citing an anonymous source. Perplexity’s valuation touched the rumored $9 billion with the latest funding round, reaching a new milestone before the year comes to an end.
READ: AI startup Perplexity nears $9 billion valuation amid copyright lawsuits from publishers (November 6, 2024)
Previously, the AI search startup was valued at $1 billion in April, and its valuation reportedly surged to $3 billion in June after securing an investment of $10 million to $20 million from SoftBank Group Vision Fund 2, with backing from Nvidia.
As enterprise AI continues to evolve, solutions like Perplexity are setting the stage for the future of intelligent business tools. These advancements are reshaping how organizations interact with data, streamline workflows, and optimize operations. With ongoing innovation in AI, businesses are poised to unlock new opportunities, drive growth, and stay competitive in a rapidly changing digital world.