#212: $520M One-click Search
Just when we’ve been saying “Google it” as a verb forever at this point, there is a rising "search startup" that may create a dent in Google’s currently-90% market share
Perplexity AI recently raised $73.6 million from investors including Nvidia and Jeff Bezos (founder of Amazon), making its latest valuation at $520 million
Let’s take a look at what the company sells, how it makes money, where it’s headed
Search tool, kinda different
The above YouTube video from Perplexity’s own channel (click image) well demonstrates the product
Their alternative attempt at searching is based on the following principle: “Searching for information should be a straightforward, efficient experience, free from the influence of advertising-driven models”
👉 Ape of Omaha’s takeaway:
It’s sort of like asking consecutive questions to OpenAI’s ChatGPT, except with Perplexity’s AI, I’m able to more conveniently click on options that guide my search and the results give me sources I can directly go to.
A mix of large language model driven results (resembling OpenAI) and internet search results (resembling Google’s search engine)
Not an ad-based model
Google, through its search engine business, generates revenue by offering sponsored results to user queries as we all know (aka ad business model)
Perplexity AI, similar to OpenAI’s ChatGPT Pro, charges subscription fees for a premium version
Where it’s headed
So far, Perplexity's received investments from NEA, Databricks, Nvidia, Jeff Bezos, Elad Gil (former Twitter VP), Tobi Lutke (Shopify CEO), Nat Friedman (former GitHub CEO), to mention a few.
👉 Ape of Omaha’s Takeaway:
Yes, the subscription model makes sense, but there are a plethora of AI services out there trying to "make it" (like OpenAI did already) offering premium services and functionality. How Perplexity AI will get to the "top 5% to 10% of Americans" as co-founder Srinivas claimed is, as of now, ambiguous.
Admittedly Perplexity's revenue has doubled to $6 million recently, but more than anything, if and when Perplexity AI's product takes off, it would be because the world’s consciousness and cautiousness with various generative AI products’ information integrity (and lack of fact checking) comes into focus, as Perplexity’s product focuses heavily on correct citation of sources in its search results and boasts its viability to those in academic and journalism.
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💡 Something I’m thinking about
Early-stage VC firm Slow Ventures recently backed John Fish, a BookTuber looking to build a literary hub (click image)