Aravind Srinivas, CEO of Jeff Bezos-backed Perplexity AI, has challenged the duopoly of Alphbaet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Meta Platforms, Inc. (NASDAQ:META) in the search and advertising industry.
The company is introducing new features aimed at enhancing user experience.
What Happened: On Thursday, in a conversation on CNBC's Closing Bell, Srinivas discussed the launch of Perplexity's new "internal knowledge" search, which consolidates external and internal searches.
Srinivas stated that the new feature will allow users to conduct centralized research on the web and internal company proprietary data together. This is expected to improve decision-making processes, particularly for those in the financial services industry.
The platform enables users to query stock data, institutional funds, and now internal proprietary data, integrating with third-party sources like Crunchbase and FactSet.
When asked if the duopoly of Google and Meta in the search and advertising field cracking, Srinivas agreed saying, "100%. It's all about what consumers are doing."
He pointed out that consumer behavior is shifting from simple keyword searches to more complex queries, making platforms like Perplexity more appealing to advertisers looking for deeper engagement.
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CEO of @perplexity_ai @AravSrinivas discusses launching the platform's new "internal knowledge" search today, as the company ramps up efforts to take on the likes of Google in search and advertising: pic.twitter.com/bLCZ3qjsmT
— CNBC's Closing Bell (@CNBCClosingBell) October 17, 2024
Why It Matters: Perplexity AI has previously been critical of Google's ad-heavy model. The AI startup has been working towards revolutionizing the search engine industry.
In June, in an interview, Srinivas was asked about AI's influence on traditional search models like Google. He responded by saying that people love products tailored to their needs.
"Google used to be that when it first came out that's why it disrupted... but then it ended up going the same path as Yahoo by becoming an advertising platform," he stated at the time.
In August earlier this year, it was reported that Perplexity's revenue and usage have grown 700% since the start of the year.
The startup has also been in talks with top-tier companies like Nike and Marriott International and plans to launch an ads system by the end of the year.
Earlier this week, Ross Gerber, CEO of Gerber Kawasaki Wealth also expressed concerns over the sustainability of Google's business model, highlighting the growing threat posed by competitors such as OpenAI's ChatGPT and Perplexity.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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