Perplexity AI aims to rival Google

CNBC Television
5 Jan 202404:24

TLDRPerplexity, an AI-powered search engine startup, is challenging Google's dominance with innovative search paradigms. Backed by prominent investors like Jeff Bezos, the company has raised $73.6 million and is valued at $520 million. CEO Aravind Srinivas emphasizes a clean, minimal, and simple user interface that leverages large language models for concise, conversational responses. Perplexity's approach aims to provide accurate and transparent search results, differentiating itself in an era where generative AI is reshaping consumer applications and potentially redefining the search engine landscape.

Takeaways

  • 🚀 Perplexity is a new AI-powered search engine start-up aiming to compete with Google, having raised significant capital.
  • 🌟 Google has dominated the search engine market for decades, but the rise of generative AI is prompting a paradigm shift in search technology.
  • 🤖 The CEO of Perplexity believes that the traditional search engine model, based on links and rankings, is outdated and that users just want straightforward answers.
  • 📈 Perplexity is focusing on a clean, minimal, and simple user interface, leveraging large language models like GPT-4 and Google's Gemini for its search functionality.
  • 🧠 The generative AI shift is moving search engines away from a reliance on links and towards a more intuitive, user-centric experience.
  • 🔍 Early experiments with Google's generative AI have been criticized for being cluttered and causing cognitive overload for users.
  • 💡 Perplexity aims to create a search product that is not only technologically advanced but also user-friendly and aesthetically pleasing.
  • 📊 The advantage in the generative AI age is data, and while Google has a wealth of first-party data, other companies are looking to leverage this in new ways.
  • 🔮 Industry insiders like Serena Bass believe that 2024 will be the year of consumer applications for generative AI, potentially leading to new market leaders.
  • 🏆 Despite the challenges, Google remains a valuable player with its foundational technology and large language models, and could still adapt to the changing landscape.
  • 🥇 The key question for Google and Perplexity is whether they can create products that truly resonate with users and offer a superior experience compared to existing offerings.

Q & A

  • What is the main challenge that Perplexity aims to address in the search engine market?

    -Perplexity aims to address the challenge of Google's dominance in the search engine market by introducing a new paradigm shift in search technology, focusing on generative AI and user interface improvements.

  • How has Google maintained its position in the search engine market?

    -Google has maintained its position by being the first to establish a search engine based on link analysis and leveraging the rapidly growing internet landscape since the late 90s.

  • What does the CEO of Perplexity believe has changed in the search engine landscape?

    -The CEO believes that the generative AI shift has created a new paradigm where the focus is on providing clean, minimal, and simple user interfaces that rely on large language models for better search experiences.

  • What are some of the criticisms against Google's current search engine?

    -The criticisms include that Google's search results are cluttered, filled with ads, and create too much cognitive overload for users.

  • How does Perplexity plan to differentiate itself from Google and other search engines?

    -Perplexity plans to differentiate itself by creating a product that is clean, minimal, and simple, focusing on user experience and leveraging large language models for more effective search results.

  • What is the significance of the generative AI shift in the technology industry?

    -The generative AI shift signifies a move towards more advanced and natural language processing capabilities, enabling better and more intuitive interactions with technology, particularly in the realm of search engines.

  • What does the CEO of Perplexity think about the future of the search engine market?

    -The CEO believes that there will be more than one or two winners in the search engine market, and that companies like Google may still hold value due to their first-party data and cloud computing investments.

  • What is the role of first-party data in the generative AI age?

    -In the generative AI age, first-party data is crucial as it powers the large language models that are essential for providing relevant and accurate search results.

  • How does the CEO of Perplexity view the competition with established players like Google?

    -The CEO views the competition as an opportunity for new players to innovate and offer better user experiences, suggesting that the first-mover advantage may not be as significant in the generative AI era.

  • What is the main focus for companies in the consumer applications space?

    -The main focus for companies in the consumer applications space is to be close to the cheap compute power or the consumer, as stated by Sequoia, indicating a shift towards more user-centric and accessible technologies.

  • What is the potential impact of the generative AI era on existing search engines like Google?

    -The generative AI era could potentially disrupt existing search engines like Google if they fail to adapt to the new paradigm, which emphasizes user experience and the effective use of large language models.

Outlines

00:00

🚀 Perplexity: A New A.I.-Powered Search Engine Challenger

The video script introduces Perplexity, a start-up backed by prominent figures like Jeff Bezos, aiming to revolutionize the search engine landscape by taking on Google. The CEO discusses the shift from traditional search methods to a new paradigm driven by generative A.I., emphasizing the importance of a clean, minimal, and simple user interface. Perplexity leverages large language models like GPT-4 and Google's Gemini to create a more intuitive and user-friendly search experience. The conversation highlights the challenges faced by new entrants in the market and the potential for generative A.I. to redefine consumer applications, suggesting that established players like Google may not necessarily maintain their dominance. The discussion also touches on the significance of first-party data in the generative A.I. age and the strategic focus on cloud computing to counter potential market shifts.

Mindmap

Keywords

💡Perplexity

Perplexity refers to an AI-powered search engine start-up aiming to challenge Google's dominance. It is a company that has attracted significant investment and backing from notable figures like Jeff Bezos. In the context of the video, Perplexity represents a paradigm shift in search technology, moving away from traditional link-based search to a more generative AI-driven approach.

💡Generative AI

Generative AI refers to the use of artificial intelligence to create new content, such as text, images, or audio. Unlike traditional AI that often focuses on analyzing or recognizing patterns, generative AI is about synthesis. In the video, it is mentioned that the advent of generative AI has led to a paradigm shift in the search engine landscape, with Perplexity being a company at the forefront of this change.

💡Search Engine

A search engine is a software system designed to search for information on the World Wide Web in a systematic manner. It is a crucial part of the internet infrastructure, allowing users to find relevant information quickly. The video discusses the evolution of search engines, with a particular focus on how Perplexity aims to revolutionize the industry by moving away from traditional link-based results to a more user-centric, AI-generated experience.

💡Paradigm Shift

A paradigm shift refers to a significant change in the basic concepts and experimental practices of a scientific discipline. In a broader context, it can also refer to a major change in the way people think about or do something. In the video, the paradigm shift refers to the transition from traditional search engine methodologies to those powered by generative AI, as exemplified by Perplexity's approach.

💡User Interface

The user interface (UI) is the space where interactions between humans and machines occur, and how users interact with a system. It encompasses the design of the screens, the controls, and the overall experience of using a device or software. In the context of the video, Perplexity's emphasis on a clean, minimal, and simple user interface is highlighted as a key differentiator from traditional search engines like Google.

💡Cognitive Overload

Cognitive overload occurs when the amount of information presented to an individual exceeds their cognitive capacity to process it. This can lead to a decrease in the quality of decision-making and comprehension. In the video, cognitive overload is discussed as a problem with current search engines, which Perplexity aims to address by creating a more streamlined and less cluttered search experience.

💡Large Language Models

Large language models are AI models that are trained on vast amounts of text data to generate human-like language. These models can perform a variety of language tasks, such as translation, summarization, and even creating new content. In the video, Perplexity relies on large language models like GPT-4 and Google's Gemini to power its search engine, emphasizing the importance of these models in the new era of generative AI.

💡Cloud Computing

Cloud computing is the delivery of computing services, such as storage, processing power, databases, networking, software, analytics, and intelligence, over the internet (the 'cloud'). It allows for scalable resources and enables businesses to be more flexible and cost-effective in their operations. In the video, it is suggested that Google might make a significant bet on cloud computing to maintain its position in the face of the generative AI wave.

💡Consumer Applications

Consumer applications refer to software programs or apps designed for use by individuals rather than businesses. These applications often focus on enhancing the user experience and providing services directly to consumers. In the video, it is predicted that the focus in the generative AI space will shift towards consumer applications, with companies getting closer to the consumer to meet their needs.

💡First Mover Advantage

The first mover advantage is a competitive advantage that early adopters of a technology or industry can gain over other competitors. It refers to the benefits that the first entrant in a market can achieve, such as establishing brand recognition and capturing a significant market share. In the video, the concept is discussed in the context of the search engine market, questioning whether being the first or second in the generative AI space will be as crucial as it has been in the past.

💡Market Share

Market share refers to the percentage of the total market that a particular company or product holds. It is a key business metric that indicates the company's relative size and success in the market. In the video, the discussion revolves around the potential changes in market share distribution due to the rise of generative AI and new players like Perplexity.

Highlights

Perplexity, an AI-powered search engine start-up, is looking to take on Google after raising 74 million with support from big names.

Google has been the dominant research entity for decades, with few start-ups having the significant capital to compete with them.

Perplexity is backed by high-profile ambassadors, including Jeff Bezos, and believes that the generative AI shift has created a new paradigm in search.

Search has been about ten blue links for the last 20 years, but people just want answers, which was a concept that exploded in the late 90s internet era.

Perplexity aims to move search from links-based algorithms to a more user-centric interface.

Google was born in the internet era and its search has not transitioned quickly enough to the generative AI.

Serena Bass criticizes Google's experiments as cluttered and filled with too much cognitive overload for users.

Perplexity is creating a clean, minimal, and simple product that relies on large language models like GPT-4 and Google's Gemini.

The generative AI shift last year was all about enabling the models and chips in cloud computing.

Silicon Valley believes that we will see the rise of consumer applications, potentially making companies like Google not the winners this time.

The first mover advantage in the generative AI age is being questioned, with data being the key advantage, particularly first-party data.

There may not be just one or two winners in the generative AI space, unlike Google's market share dominance.

Google's valuable first-party data powers a lot of the large language models but they may need to focus on cloud to offset potential competition.

The question arises whether generative AI will displace search or if a company like Perplexity can do it better.

Google has developed foundational technology and needs to create a product that users want to use, as competitors like Open AI and ChatGPT have shown.

The discussion around the differentiation of large language models and the need for consumer applications in the generative AI era.

Sequoia publishes a piece stating that companies must be close to cheap compute power or the consumer to succeed.

The belief that many companies will get closer to the consumer this year, indicating a shift in the industry focus.

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