Insider Brief
- Perplexity AI, backed by Nvidia and Jeff Bezos, plans to introduce advertising on its AI-powered search platform by Q4 2024.
- The company has initiated a revenue-sharing program with publishers, including TIME, Der Spiegel, and Fortune.
- Perplexity AI’s valuation doubled to over $1 billion after a $62.7 million fundraising round in April 2024.
- Image: Perplexity Blog
Perplexity AI, the artificial intelligence startup supported by Nvidia (NVDA.O) and Jeff Bezos, is set to introduce advertising on its AI-powered search platform by the fourth quarter of this year, according to Reuters on Thursday. This move marks a significant step in the startup’s strategy to monetize its rapidly growing platform.
The San Francisco-based company recently launched a program aimed at publishers, including prominent names such as TIME, Der Spiegel, and Fortune. Through this initiative, Perplexity AI plans to share revenue generated from interactions where a publisher’s content is referenced on its search platform, Reuters reported.
The introduction of AI into search engines has been a focal point of the tech industry since OpenAI’s ChatGPT debuted in November 2022. Major players like Microsoft (MSFT.O) have integrated AI into their search engines, with Microsoft leveraging OpenAI’s technology for Bing. Google’s efforts to maintain its dominance in the search industry included rolling out AI-powered summaries at its developer conference in May. Analysts have since viewed AI-assisted search as a formidable challenge to Google’s long-held supremacy.
Perplexity AI’s advertising rollout comes on the heels of a successful fundraising round in April 2024, where the company raised $62.7 million. Existing investors such as Nvidia and new backers including Garry Tan, CEO of Y Combinator, and Brad Gerstner, founder and CEO of Altimeter Capital, contributed to the round. This influx of capital pushed the company’s valuation to over $1 billion, doubling its value from just three months prior, Reuters reported.
