Perplexity Bets on AI Search Engine

Bloomberg Technology
5 Jan 202403:38

TLDRPerplexity is an AI-driven conversational answer engine that stands out from traditional chatbots by providing sourced answers from the web, ensuring users know the origin of the information. The platform, backed by investors like NVIDIA, operates on compute clusters from hyperscalers like EWR. With a focus on organic growth, Perplexity aims to become the go-to source for accurate information, currently reaching 10 million users monthly without paid marketing. The company's investment is directed towards scaling adoption and usage, with a vision of expanding the user base before exploring monetization options.

Takeaways

  • 🚀 Perplexity is an AI-powered conversational answer engine, distinct from traditional search engines.
  • 🔍 It provides direct answers to queries and always cites sources, offering transparency on the origin of information.
  • 🤖 Unlike other chatbots, Perplexity focuses on delivering accurate and reliable information from the web.
  • 💡 The uniqueness of Perplexity lies in its ability to combine large language models with web search in a novel product offering.
  • 🌐 NVIDIA is a strategic investor and partner, but Perplexity's compute clusters are hosted on other hyperscalers like AWS.
  • 📈 The market differentiation strategy for Perplexity is based on clearly labeled sourcing and accurate information delivery.
  • 🎯 The goal is to become the go-to chatbot for reliable information, aiming to attract a broad user base.
  • 🧠 Perplexity's founders were initially focused on brainstorming and creating products using large language models.
  • 💸 The funding raised is primarily directed towards research and development (R&D) and scaling user adoption.
  • 📊 The company has experienced organic growth, with 10 million users reached without paid acquisition.
  • 📈 The focus for spending is on scaling adoption and usage rather than immediate monetization.
  • 🔗 User growth and adoption are seen as key indicators of progress and success for the company.

Q & A

  • What is the primary function of Perplexity?

    -Perplexity is an AI-powered conversational answer engine that provides direct answers to queries without acting as a search engine.

  • How does Perplexity differ from other chatbots?

    -Perplexity stands out by always providing sources for its answers, clearly indicating where each part of the answer originates from on the web.

  • Who is one of the investors or backers of Perplexity?

    -NVIDIA is one of the investors of Perplexity, with whom they strategically partner for framework development in training and inference.

  • Where does Perplexity host its compute clusters?

    -Perplexity hosts its compute clusters on other hyperscalers like EWR, rather than having their own dedicated infrastructure.

  • What is the unique value proposition of Perplexity in the market?

    -Perplexity aims to be the single chatbot that users rely on for accurately correct information from the web, with clear sourcing of its content.

  • How has Perplexity grown its user base?

    -Perplexity has experienced organic growth, primarily through word of mouth and announcements on platforms like Twitter.

  • What was the initial intention behind the creation of Perplexity?

    -The founders initially aimed to brainstorm and create products using large language models as an emerging technology, which led to the development of Perplexity.

  • How will the funds raised be utilized by Perplexity?

    -The funds will be directed towards scaling adoption and usage, with a significant portion being allocated to increasing compute resources.

  • What is the current focus of Perplexity's investors?

    -The investors are focused on scaling user growth and adoption, rather than immediate monetization, to establish a larger user base first.

  • How does the founder view the pressure to commercialize?

    -The founder believes that progress is reflected in user growth and adoption, and that monetization opportunities will naturally arise as the user base expands.

  • What are some potential future monetization strategies for Perplexity?

    -Future monetization strategies could include subscriptions and other forms of monetization as the user base grows and engages with the platform.

Outlines

00:00

🤖 Introduction to Perplexity AI and its Unique Features

The paragraph introduces Perplexity as an AI-powered conversational answer engine that differs from traditional search engines. It emphasizes the tool's ability to provide direct answers to queries, along with sourcing information, which sets it apart from other chatbots. The conversation touches on the support and investment from NVIDIA, particularly in terms of framework development for training and inference, and the use of compute clusters on other hyperscalers like AWS. The uniqueness of Perplexity lies in its transparency about the sources of its information, which is seen as a potential differentiator in the market. The discussion also highlights the variety of AI chatbots available and positions Perplexity as a reliable source for accurate information on the web, aiming to cater to a large user base.

Mindmap

Keywords

💡AI powered conversational answer engine

This refers to a type of artificial intelligence system designed to provide direct answers to queries in a conversational manner, as opposed to a search engine which might present a list of sources or results. In the context of the video, this is the core functionality of the product being discussed, which aims to offer users a straightforward way to get information from the web without the need for searching through multiple sources.

💡Perplexity

Perplexity, in the context of this video, is the name of the AI product being discussed. It represents a unique tool that leverages AI to offer direct answers sourced from the web, with a focus on transparency by providing the sources of the information. It is positioned as a reliable and accurate source of information, differentiating itself from other chatbots by clearly labeling its sourcing.

💡Sources

In the context of the video, 'sources' refers to the origin of the information provided by the AI conversational answer engine. It is a critical aspect of Perplexity's functionality, ensuring transparency and credibility by making it clear to users where the information is coming from. This feature is highlighted as a key differentiator in the market of AI chatbots.

💡Compute

Compute refers to the computational resources required to run complex AI models like the one discussed in the video. It involves the use of powerful hardware, such as clusters of computers, to perform the necessary calculations for training and inference in AI systems. In the context of the video, the company has its compute cluster on other hyperscalers, which means they use large cloud-based infrastructure to support their AI operations.

💡A100 cluster

An A100 cluster refers to a group of computers that are networked together and equipped with NVIDIA A100 graphics processing units (GPUs). These GPUs are high-performance computing components often used in AI and deep learning applications due to their ability to handle large-scale parallel processing. In the video, the mention of an A100 cluster relates to the computational power needed for the AI model and the strategic partnership with NVIDIA, a company known for its GPUs.

💡Competition

Competition in this context refers to the rivalry among different AI chatbots and technologies in the market. The video discusses the unique selling proposition of Perplexity in a competitive landscape, highlighting its ability to provide sourced answers as a differentiating factor.

💡Chatbots

Chatbots are computer programs designed to simulate conversation with human users, often over the internet. In the video, chatbots are discussed as a broad category of AI technologies, with Perplexity being a specific example that aims to provide accurate and sourced information.

💡Monetization

Monetization refers to the process of generating revenue from a product or service. In the context of the video, it is discussed as a future opportunity for the AI conversational answer engine as the user base grows, with potential strategies including subscriptions or other forms of revenue generation.

💡Organic growth

Organic growth refers to the natural and gradual expansion of a user base or business without the use of paid advertising or other aggressive marketing tactics. In the video, the company's organic growth is highlighted as a positive aspect, indicating that word of mouth and social media presence have been effective in attracting users without any paid promotions.

💡R&D (Research and Development)

R&D stands for Research and Development, which involves the exploration and creation of new technologies, products, or processes. In the context of the video, R&D is a key area where the company plans to invest the funds raised, with the goal of improving and expanding their AI capabilities.

💡Word of mouth

Word of mouth is a type of informal communication where information is passed from person to person, often leading to the spread of ideas or the growth of a product or service. In the video, word of mouth is cited as a primary driver of the company's user growth, emphasizing the power of personal recommendations in building a user base.

Highlights

Perplexity is an AI-powered conversational answer engine, not a search engine.

Perplexity directly provides answers to queries with sources, differentiating it from other chatbots.

NVIDIA is a strategic investor and partner for framework development in training and inference.

Compute resources are hosted on other hyperscalers like EWR, not limited to a single provider.

The unique selling proposition of Perplexity is the clear labeling of information sources.

AI chatbots will vary widely, with some for brainstorming and others for interacting with personalities.

Perplexity aims to be the single chatbot relied upon for accurate information on the web.

Perplexity has reached 10 million monthly users organically without paid acquisition.

The initial goal was not to create a search company, but to use large language models for product development.

Perplexity combines large language models with web search in a novel product.

Funding is allocated towards R&D and marketing to scale adoption and usage.

The focus is on user growth and adoption rather than immediate monetization.

Investors are aligned with the strategy of scaling user base before focusing on monetization.

The ambition is to create a reliable source of accurate information in a market that is yet to be fully explored.