Market Movers: AI Search Startup Perplexity Aims for $8B Valuation
In a bid to challenge Google’s dominance in the search arena, artificial intelligence search startup Perplexity AI is seeking to more than double its valuation to $8 billion or more in its latest funding round. According to reports, the Nvidia-backed startup is looking to raise around $500 million, with ambitions to utilize generative AI to answer queries.
Perplexity’s Business Model Shift
The startup has started shifting its business model from subscription to advertising, aligning itself with how Google Search generates revenue. Perplexity’s search engine reportedly answered around 250 million questions in July, compared to 500 million throughout 2023. The company’s estimated annualized revenue based on recent sales is currently around $50 million.
UBS Sells Stake in Swisscard to American Express
In a separate development, UBS announced the sale of its 50% stake in Swisscard to its joint venture partner American Express. The transaction will make American Express the sole owner of Swisscard, which operates credit card services under various brands. The specific financial terms of the deal were not disclosed.
Activist Investor Starboard Takes Stake in Kenvue
Activist investor Starboard Value has amassed a sizable stake in Kenvue Inc., the consumer-products company that makes Tylenol and Listerine. Starboard wants Kenvue to take measures to help boost its stock price, which has remained unchanged this year.
Market Outlook
Ahead of the opening bell, Dow, S&P, and Nasdaq futures are in the red. Crude oil is up 1.5% at $70/barrel, while Bitcoin is down 0.2% at $68,000. In the world markets, the FTSE 100 is flat, and the DAX is up 0.4%. Spirit Airlines is up 51% premarket after revealing it has fully utilized its $300M senior secured revolving credit facility.
Economic Calendar
Today’s economic calendar includes a speech by Dallas Federal Reserve Bank President Lorie Logan, followed by a moderated question-and-answer session. The Leading Indicators report is also scheduled for release. San Francisco Federal Reserve Bank President Mary Daly will participate in a moderated Q&A session with the Wall Street Journal’s Nick Timiraos later in the day.
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