Perplexity is also working on monetizing its platform by introducing a subscription-based product, "Perplexity Pro", offering enhanced features. The Pro version, powered by OpenAI's GPT-3.5 and its proprietary AI model, offers model choices like GPT-4 and Anthropic's Claude. However, there are doubts about the profitability of AI-driven search models and the company's ability to compete with Google's 90% market share in online search. Despite these challenges, Perplexity's innovative approach and strategic investments indicate a promising future in the online search landscape.
Key takeaways:
- Perplexity, an AI-powered search engine, is emerging as a competitor to tech giants like Google and Bing, with a valuation of $520 million and substantial investments, including a $74 million round led by Amazon founder Jeff Bezos.
- Perplexity's "Copilot" feature offers a unique user experience by asking clarifying questions to deliver more accurate search results. It also allows users to search for specific sources, like academic papers and YouTube videos.
- Despite its success, Perplexity faces challenges such as competition from established players, concerns about censorship and misinformation, and doubts about the profitability of AI-driven search models.
- Perplexity plans to use new funds for hiring and product development, aiming to grow its team from 38 to 60, despite the challenge of Google's 90% market share in online search.