March 13, 2024: Perplexity AI, a startup founded in August 2022, is committed to difficult Google’s dominance within the search engine market with its AI-powered platform that mixes the functionality of a chatbot and a conventional search engine.

The company’s rapid growth and modern approach have caught the eye of investors, including Amazon founder Jeff Bezos, who invested in Perplexity AI through his Bezos Expeditions Fund.

In January, Perplexity AI CEO Aravind Srinivas announced that the startup had raised $73.6 million in a funding round that, along with Bezos’ investment, also included investments from enterprise capitalists, firms like Nvidia and angel investors.

The round valued the corporate at around $520 million. Just a couple of months later, Perplexity AI enters right into a recent financing deal that may lead to its valuation nearly doubling to around $1 billion, based on a report from Perplexity AI Wall Street Journal.

Srinivas said in a blog post that Perplexity AI attracted 10 million monthly energetic users in 2023 and served over half a billion queries.

Jonathan Cohen, vice chairman of applied research at Nvidiapraised the startup, saying it was “one among the few consumer AI products to achieve this vital milestone of 10 million MAUs.”

Perplexity AI’s search engine provides real-time information and provides footnotes listing the sources of answers.

The company generates revenue by offering a Pro version for $20 per 30 days that enables users to pick from several major language models, including OpenAI’s GPT-4, Anthropic’s Claude 2.1, or Perplexity’s own LLM.

Srinivas has been vocal about his belief that Google’s search engine is outdated and that Perplexity AI represents the longer term of online information access.

“Google will probably be seen as something that’s old and old, and Perplexity will probably be seen as something that’s next generation and the longer term,” he told Reuters in January.

Despite Google’s ongoing efforts to integrate AI into its search engine and test it on hundreds of thousands of users, Srinivas believes the tech giant is missing this Incentive to act quickly and improve the product experiencefor the reason that essential revenue comes from users clicking on links and viewing ads.

As people increasingly turn to AI chatbots for his or her online queries, Srinivas is confident that Perplexity AI’s approach will prove to be more efficient and user-friendly.

“The days of looking through search engine optimization spam, sponsored links, and multiple web pages will probably be replaced with a rather more efficient strategy to devour and share information,” he wrote within the January announcement.

Although Perplexity AI’s potential $1 billion valuation is impressive, the startup still faces a major challenge in competing with Google, which has vast resources, AI talent, and a parent company. Alphabet value $1.7 trillion. Still, Bezos’ investments and Perplexity’s rapid growth show AI

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