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Jeff Bezos–backed AI search startup’s CEO says ‘Google is going to be viewed as something that’s legacy and old’

Jan 06, 2024 - fortune.com
Jeff Bezos has invested in Perplexity, a startup founded in August 2022 that aims to challenge Google with an AI-based search engine. The San Francisco-based company, which has quickly grown to 10 million monthly active users, has raised $73.6 million from investors led by venture capital firm IVP, and including Bezos, Nvidia, and Shopify cofounder Tobias Lütke. Despite only making about $5 million to $10 million in annual revenue, the recent funding round values Perplexity at about $520 million.

Perplexity's CEO, Avarind Srinivas, believes that AI will transform how we access information and that Google will be viewed as something that's legacy and old. The company offers a Pro version for $20 per month that allows users to pick from various large language models. Despite facing competition from tech giants like Google and Microsoft, Srinivas is confident that if AI chatbots can directly answer users' questions, the need for traditional search engines will decrease.

Key takeaways:

  • Jeff Bezos has invested in a startup called Perplexity, which aims to challenge Google with an AI-based search engine.
  • Founded in August 2022, Perplexity has grown to 10 million monthly active users and served over half a billion queries last year, despite not yet being profitable.
  • Perplexity recently raised $73.6 million from investors including Bezos, Nvidia, and Shopify cofounder Tobias Lütke, valuing the company at about $520 million.
  • Perplexity's CEO, Avarind Srinivas, believes that AI will transform how we access information and that Google will be viewed as 'legacy and old' while Perplexity will be seen as the next generation.
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