Perplexity AI to introduce ads on its search platform
Perplexity AI, a start-up backed by NVIDIA and Jeff Bezos, has announced plans to incorporate advertising into its artificial intelligence (AI)-powered search platform. The implementation is expected to be completed by the fourth quarter of this year. This move follows the company's recent partnership with publishers such as TIME, Der Spiegel, and Fortune for a revenue-sharing program based on content referencing.
AI integration in web search challenges Google's dominance
The integration of AI into web search has been a significant trend since the launch of ChatGPT in November 2022. The latest development is seen as a potential challenge to Google's market dominance. Major players like Microsoft and Google have already begun incorporating AI technology into their search engines. Microsoft leverages OpenAI's tech for Bing and Google has introduced Gemini-powered AI summaries for search results in several countries.
Perplexity AI's recent funding round doubles its valuation
In April, Perplexity AI secured $62.7 million in funding from existing investors like NVIDIA and new ones including Garry Tan, CEO of Y Combinator, and Brad Gerstner, founder and CEO of Altimeter Capital. This investment round significantly increased the company's valuation to over $1 billion, marking a twofold increase from just three months prior. The additional funds are expected to support the company's ongoing efforts in integrating advertising into its AI-powered search platform.
