10 Things to know on Perplexity AI, a new competitor of Google | Mint – Mint

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With a recent injection of $73.6 million in funding from notable investors like Nvidia and Jeff Bezos, the San Francisco-based startup is poised to challenge industry giant Google with its innovative approach. 


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Here are 10 key aspects to understand about Perplexity AI, from its advanced features to market impact and future plans.

What is Perplexity AI?

Perplexity’s search tools provide users with the ability to obtain immediate answers to questions along with relevant sources and citations. This functionality is supported by a diverse range of large language models (LLMs), including those from OpenAI and Meta’s open-source model Llama. These models are capable of summarizing and generating information efficiently.

How Does Perplexity AI Work?

According to Deepgram.com, Perplexity AI operates through natural language understanding, enabling users to interact conversationally. The system indexes internet content and sorts it for relevance. Providing contextual answers, Perplexity AI tailors responses to user needs. 

Perplexity AI vs ChatGPT

Perplexity AI, based on GPT-3.5, distinguishes itself from ChatGPT, which uses the newer GPT-4. Notably, Perplexity AI is claimed to integrate conversational AI with web search, providing a fusion of AI capabilities and search engine precision. 

Key Features of Perplexity AI

Perplexity AI utilizes search with a chatbot interface powered by OpenAI’s GPT-3.5. Its Natural Language Understanding offers responses, presenting source-linked answers for credibility. Pro accounts offer AI model options, including GPT-4. The ad-free design is claimed to prioritize user focus, and source citations to enhance trust and transparency. 

Use Cases and Potential Applications for Perplexity AI

Perplexity AI benefits academic research, helping students to navigate databases. Journalists can also benefit from its fact-checking prowess, ensuring accurate reports. In content marketing, Perplexity AI validates ideas, aligning strategies with current trends. Integrated into apps like Boring Report, it summarizes news. Businesses can leverage Perplexity AI for market research.

Pricing for Perplexity AI

Perplexity AI, founded by Aravind Srinivas offers a free search experience. For advanced capabilities, Pro Perplexity accounts start at $20/month, providing upgraded AI models like GPT-3.5 and Claude-2, with Pro users accessing GPT-4. Additional features cater to users desiring a comprehensive toolset, expanding beyond standard offerings.


Perplexity AI, a San Francisco-based search startup, has secured $73.6 million in funding from investors including Nvidia and Jeff Bezos. Led by IVP, the round values the company at approximately $520 million. Perplexity AI, having raised $25.6 million in a previous round last year, reported over 500 million queries served in 2023 with minimal marketing expenses. 

Company’s future plans

Aravind Srinivas, CEO of Perplexity, emphasized the startup’s strength in concentrating on and optimizing various high-performing AI models rather than relying on a single one. He suggested that Google might be perceived as outdated, labeling Perplexity as the next-generation and the future in comparison.

The funding will be utilized by the company to expand its workforce and develop new products. Currently employing 38 individuals, the company aims to increase its team size to approximately 60 by the end of the year.

Market share

According to a report by Similarweb data, the website and mobile web of Perplexity AI gained 45 million visits in December, ranging from up to 2.2 million, when the search service had become available in December 2022.

Despite experiencing rapid expansion, the company remains unprofitable and generates annual revenue in the single-digit millions. Positioned as a moonshot in the online search market, it faces a formidable challenge given Google’s dominant 90% market share.

Integrations to enhance Perplexity AI’s capabilities

Perplexity AI supports Chrome extension by embedding directly into the browser, while integration with email clients offers summarization of lengthy threads. In collaboration with news apps, Perplexity AI condenses articles into concise summaries. 

(Sources: Reuters and Deepgram)


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Published: 11 Jan 2024, 01:37 PM IST

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