Link: Perplexity’s popularity surges as AI search start-up takes on Google

Perplexity AI, a burgeoning AI search start-up, achieved seven-fold growth in monthly revenues and usage following a recent $250 million funding round. This surge underscores its fast ascent in the generative AI landscape, rivalling OpenAI's ChatGPT.

The AI-focused company responded to around 250 million queries last month, significantly scaling up its operations since its inception. Perplexity was founded just before the release of ChatGPT, highlighting its rapid development.

Amidst escalating competition, Perplexity is shifting its business model from subscriptions to advertising. This move positions it directly against Google, which currently leads the $300 billion search ads industry.

Notably, the start-up's strategic pivot includes a partnership model with news publishers, sharing a "double-digit" percentage of revenue. It recently faced plagiarism accusations, prompting revisions in how it credits sources.

Perplexity does not develop its own AI models but licenses technology from others, previously relying on Microsoft’s Bing. Now, it boasts its proprietary search index and ranking system, diversifying its technical assets.

Although advertising could deter users accustomed to ad-free environments, Perplexity aims to refine user engagement by prioritizing transparency and reliability in its responses. The company’s approach reflects a broader AI-driven shift in internet search dynamics, challenging traditional models. #

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