Perplexity AI's rapid growth reflects strong challenge to Google in AI-powered search market
Date
8/12/2024 5:02:40 AM
(MENAFN) Perplexity AI, a rising star in the world of AI-powered search engines, has seen its monthly revenue and user base soar by sevenfold since the start of the year, thanks to a successful USD250 million funding round. The startup, which was founded just three months before OpenAI's ChatGPT made its debut, answered approximately 250 million questions last month alone. This remarkable achievement contrasts with the half-billion queries it handled throughout all of 2023, underscoring its rapid growth trajectory. According to Dmitry Shevlenko, Perplexity’s head of commercial affairs, these latest figures position the company as one of the fastest-growing generative AI applications since ChatGPT's launch, despite facing some controversy over its data collection practices.
Founded in San Francisco by former Google intern Aravind Srinivas, Perplexity AI has quickly established itself as a formidable competitor in the AI search market. The company utilizes artificial intelligence to provide real-time answers to user queries, drawing from a wide range of internet sources, including news sites. Initially, Perplexity entered the year with a modest revenue projection of USD5 million, but its recent performance has led to a revised forecast exceeding USD35 million, according to an internal company source. This shift reflects the company’s accelerating momentum and its potential to disrupt the traditional search engine landscape.
As Perplexity AI scales rapidly, it is also transitioning from a subscription-based model to an advertising-driven business strategy, directly challenging Google, the dominant player in search engine advertising with an estimated market value of USD300 billion. This strategic pivot comes at a time when Google is actively working to incorporate AI features into its main search engine, and as OpenAI tests its own experimental AI search tool, SearchGPT, with nearly 10,000 users. The convergence of these developments highlights the intensifying competition in the AI-powered search space, with Perplexity AI emerging as a significant new contender.
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