Perplexity, a startup backed by Jeff Bezos, is set to challenge Google’s dominance in web search by using artificial intelligence (AI) to revolutionize how people search for information online. The San Francisco-based company, valued at $520 million, has developed an answer engine called Perplexity, which acts as a chatbot-style search engine powered by OpenAI’s GPT technology.
Unlike traditional search engines that provide a list of website links, Perplexity aims to directly answer users’ questions with text responses derived from online sources. This approach eliminates the need for users to sift through multiple search results and click on relevant links. CEO Aravind Srinivas explained, If you can directly answer somebody’s question, nobody needs those 10 blue links.
Perplexity offers a more advanced version of its search engine that utilizes GPT-4, OpenAI’s cutting-edge technology, for a monthly fee of $20. This caught the attention of Bezos, who along with other tech executives and venture capitalists, invested $73.6 million in Perplexity’s recent Series B funding round. Although the specific amount contributed by Bezos remains undisclosed, the total investment raised is the largest for an internet search startup in recent years.
Bezos has been actively supporting AI initiatives through Amazon, including a $4 billion commitment to generative AI startup Anthropic. Perplexity’s success is attributed to its ability to attract users without significant marketing expenses, relying on word-of-mouth and online buzz to grow its user base. The startup’s website and mobile app have garnered 10 million monthly users, with 53 million visits in November alone.
Interestingly, despite publicly aiming to challenge Google’s dominance, several Google executives, including former YouTube chief Susan Wojcicki and Jeff Dean, a senior vice president focusing on AI research, have personally invested in Perplexity.
However, Perplexity still has a long way to go to rival Google’s market share, as Google’s parent company, Alphabet, boasts a market cap of $1.74 trillion. Google has invested heavily in developing a search engine capable of answering queries in over 133 languages, a significant scaling challenge for a startup with a team of fewer than 50 employees.
While Perplexity has yet to be listed on a stock exchange, it remains unclear if an initial public offering is in the startup’s near future. Representatives for Perplexity have not provided any immediate comment on this matter.
Overall, Perplexity’s innovation in utilizing AI to directly answer users’ questions aims to provide a more efficient and user-friendly alternative to traditional web search engines like Google. With the backing of Bezos and other prominent investors, the startup is poised to disrupt the search engine landscape and offer a new way for users to access information online.
