Perplexity, the AI search startup, has acquired Carbon, a Seattle-based company specializing in retrieval-augmented generation technology. The acquisition, announced on December 19, 2024, is a strategic move to expand Perplexity’s enterprise search and data connectivity capabilities. Carbon’s technology enables large language models to access and incorporate information from external data sources, such as Google Drive, SharePoint, Notion, and Slack.
By integrating this technology, Perplexity aims to enhance its answer engine’s capabilities and provide a more comprehensive and personalized search experience. Aravind Srinivasan, Perplexity’s CEO, emphasized the importance of making AI “personal to you—at home, work, or on the go.” The acquisition will allow Perplexity’s platform to draw information from internal databases, cloud storage, and document repositories. Perplexity plans to launch these enhanced search capabilities in early 2025, potentially revolutionizing how professionals interact with their digital information.
The technology will enable seamless searching across multiple platforms, transforming the traditional approach to information retrieval.
Expanding data connectivity with Carbon
The acquisition comes at a time of significant growth for Perplexity.
The company recently secured a $500 million funding round, bringing its valuation to $9 billion—a remarkable increase from just $520 million at the beginning of the year. The enterprise search landscape is becoming increasingly competitive, with major players like OpenAI, Google, and Microsoft developing similar technologies. Perplexity’s acquisition of Carbon represents a strategic move to differentiate itself in this crowded market.
The Carbon acquisition highlights a broader trend in artificial intelligence: the increasing importance of contextual and personalized search experiences. Perplexity is pushing the boundaries of what’s possible with generative AI technologies by enabling AI systems to access and integrate information from multiple sources. As Perplexity continues to expand its capabilities, the Carbon acquisition represents more than just a technological enhancement—it’s strategic positioning for the future of AI-powered information retrieval.
The company is clearly signaling its ambition to move beyond traditional search engines and create a more intelligent, interconnected search experience.
