As Google announces it will completely overhaul its existing search around AI, startups targeting the same market are also raising large funding rounds in succession, TechCrunch reported on Tuesday, citing Bloomberg.

Exa Labs, backed by Andreessen Horowitz, raised $250 million at a valuation of $2.5 billion.

Beyond Exa, Tavily, TinyFish and Parallel Web Systems have also thrown their hats into the ring to reshape search with AI.

Parallel, led by former Twitter CEO Parag Agrawal, recently raised $100 million at a valuation of $2 billion in a funding round led by Sequoia Capital.

Established tech platforms such as Amazon, LinkedIn and Reddit are also revamping search and discovery functions using AI. That means there are many potential acquirers if startups consider a sale.

For companies entering AI search, the biggest competitor is OpenAI's ChatGPT. OpenAI has dominated the interface layer with ChatGPT and handled most daily AI searches until Google's search revamp, TechCrunch said. But because OpenAI cannot focus only on search and Google must protect its advertising business, there is room for small startups such as Exa and Parallel to break in, TechCrunch said.