Google's announcement that it plans to overhaul its traditional search product with AI features grabbed headlines this week, but the tech giant isn't the only one gunning for the next generation of internet discovery. Exa Labs has closed a $250 million funding round, valuing the Andreessen Horowitz-backed startup at $2.2 billion, according to Bloomberg. The company is positioning itself to compete directly in the AI search market, joining a growing cohort of well-funded newcomers. Exa isn't alone in this race. Parallel Web Systems, led by former Twitter CEO Parag Agrawal, recently secured $100 million in a round led by Sequoia Capital that valued the company at $2 billion, the Wall Street Journal reported. Other players in the space include Tavily and TinyFish. Meanwhile, established platforms like Amazon, LinkedIn, and Reddit are racing to integrate AI into their own search and discovery tools, which could make them potential acquirers for any of these startups looking for an exit. The biggest obstacle for these newcomers is ChatGPT, which currently dominates the AI-powered search interface and handles the lion's share of such queries. However, industry observers note that OpenAI can't make search a top priority, while Google faces pressure to protect its lucrative advertising business. That creates an opening for smaller players like Exa or Parallel to potentially establish themselves in niches that the bigger players overlook.