New funding round for Perplexity AI valued at approximately $9 billion sought.

• CNBC reported that Perplexity AI has commenced a new round of fundraising discussions, aiming to increase its valuation from approximately $9 billion to over $20 billion.
• Google's dominance is being challenged by Perplexity's artificial intelligence search engine.
• The company is looking to raise roughly $500 million.

An artificial intelligence search engine startup, Perplexity AI, aims to increase its valuation to approximately $9 billion in its next funding round, as confirmed by CNBC.

The company, valued at $3 billion in June, is currently seeking to raise approximately $500 million, although this amount may fluctuate, according to a source who requested anonymity due to the confidential nature of the discussions.

The Wall Street Journal was first to report on the new funding round.

Since the beginning of the year, Perplexity has maintained a valuation of approximately $500 million and has experienced increased investor interest, particularly in the generative AI industry. The company has raised three funding rounds this year.

The generative market is highly competitive, with numerous AI startups vying for a share, including OpenAI, the developer of ChatGPT.

Although AI is often praised, Perplexity has faced criticism, with accusations of plagiarism from sources such as the New York Times, who claim the company uses their content to generate its responses. Perplexity has denied these allegations.

WATCH: CNBC interview with Perplexity CEO