TLDR:

AI-powered search engine startup Perplexity, backed by Jeff Bezos, is aiming to challenge Google’s dominance in the search market. Perplexity uses generative AI to provide direct answers to search queries instead of website links, streamlining the search process for users. With 10 million monthly active users since its public launch last year, Perplexity is hoping to capitalize on the growing demand for transformative search experiences. However, there are concerns regarding the use of generative AI, such as bias, misinformation, and copyright infringement. While Google still holds a commanding market share, other AI startups like OpenAI’s ChatGPT and Baidu’s Ernie are gaining traction. The cost of operating AI systems remains a challenge, but the appeal lies in its ability to remove the need for typing and provide personalized recommendations.

Key Points:

• AI startup Perplexity, supported by Jeff Bezos, is looking to challenge Google’s search dominance.
• Perplexity uses generative AI to provide direct answers to search queries, streamlining the search process for users.
• Concerns regarding the use of generative AI include bias, misinformation, and copyright infringement.
• Competing AI startups, such as OpenAI’s ChatGPT and Baidu’s Ernie, are also gaining traction.
• The cost of operating AI systems and the need for personalized recommendations are challenges in the search market.

Article:

AI-powered search engine startup Perplexity, backed by Jeff Bezos, is aiming to challenge Google’s dominance in the search market. Perplexity uses generative AI to provide direct answers to search queries instead of website links, streamlining the search process for users.

Since its public launch last year, Perplexity has attracted 10 million monthly active users, and has answered over half a billion user queries in 2023. The startup’s goal is to leverage AI to create transformative search experiences that help users query and discover insights in new ways.

However, the use of generative AI raises concerns regarding bias, misinformation, and copyright infringement. For example, in a lawsuit filed by The New York Times against OpenAI, the news publisher pointed out that OpenAI’s AI systems share news content without directing users to the NYT site, impacting traffic and affiliate link data. Perplexity, following the same model, operates within an ecosystem where news organizations and publishers are alarmed by the implications of AI on their business.

Although Google continues to dominate the search market, other AI startups like OpenAI’s ChatGPT and Baidu’s Ernie are gaining traction. OpenAI’s ChatGPT mobile app has been downloaded over 110 million times, while Baidu’s Ernie AI chatbot has amassed over 100 million users. Microsoft’s search engine Bing has struggled to dislodge Google’s market share for years.

The cost of operating AI systems remains a challenge for startups like Perplexity. Estimates suggest that the cost of a single ChatGPT query is 1,000 times higher than the same question asked on Google. This makes the margins for AI applications smaller compared to other software-as-a-service solutions. Despite this, the appeal of AI-powered search lies in its ability to remove the need for typing and provide personalized recommendations that streamline daily tasks.