AI-Powered Search Startup Perplexity Raises $70M to Challenge Google
Perplexity AI, a new startup aiming to revolutionize AI-powered search, has secured $70 million in a funding round led by IVP. The funds will be used to challenge search engine giant Google and deliver a superior search experience to users. With an impressive valuation of $520 million post-money, Perplexity is quickly gaining traction in the competitive search market.
Perplexity offers a unique chatbot-like interface that allows users to ask questions in natural language. The platform’s AI responds with a summary containing source citations, enabling users to delve deeper into specific subjects. By providing instant answers accompanied by reputable sources, Perplexity aims to cater to anyone who uses technology to search for information.
The platform utilizes an array of in-house and third-party gen AI models to power its search capabilities. Subscribers to Perplexity’s Pro plan gain access to features such as image generation, personalized search using Copilot, and the ability to upload and analyze documents. Currently, Perplexity’s gen AI models include popular options like Google’s Gemini, Mistra 7Bl, Anthropic’s Claude 2.1, and OpenAI’s GPT-4.
Perplexity faces competition from established players like Google’s Bard, Microsoft’s Copilot, and startups like You.com. To differentiate itself, Perplexity offers robust search filtering and discovery options, including the ability to limit searches to academic papers and browse trending search topics submitted by other users.
However, there are challenges ahead for Perplexity. The cost of running gen AI models can be significant, with OpenAI spending approximately $700,000 per day to meet the demand for ChatGPT. Copyright concerns also arise, as gen AI models often scrape the web for training data, potentially infringing on copyrighted material.
Despite these obstacles, Perplexity has raised investors’ confidence by raising over $100 million to date. The startup currently boasts ten million active monthly users and plans to expand its team and develop new product functionalities.
Perplexity CEO Aravind Srinivas believes that the platform’s efficient model of knowledge acquisition and sharing will propel society into a new era of accelerated learning and research. Investors share Srinivas’s vision, recognizing the importance and fundamental nature of revolutionizing search.
Perplexity’s journey to challenge Google is not without risks, but with a commitment to continuous product development and innovation, the startup aims to offer users a search experience that exceeds expectations. As the landscape of AI-powered search evolves, Perplexity’s distinctive approach may set it apart in the quest to deliver superior search results.
