Perplexity AI to Launch Ads on Search Platform by Q4

Perplexity AI, an artificial intelligence startup backed by Nvidia and Jeff Bezos, announced plans to launch advertising on its AI-powered search platform by the fourth quarter of this year. The move marks a significant step in the company’s strategy to monetize its growing user base.

Revenue-Sharing Program with Publishers

Last month, Perplexity AI introduced a revenue-sharing program with publishers, partnering with well-known names like TIME, Der Spiegel, and Fortune. This program aims to share revenue generated from interactions where a publisher's content is referenced on the platform. By collaborating with publishers, Perplexity AI seeks to create a sustainable model for content creators while enhancing the user experience.

AI-Powered Search Shaping the Industry

Since the launch of ChatGPT in November 2022, the integration of AI into web search has become a major focus for tech companies. Analysts have noted that AI-assisted search poses a potential challenge to Google's dominance in the industry. Microsoft has integrated OpenAI’s technology into its Bing search engine, while Google introduced AI-powered summaries at its developer conference in May, bringing AI-driven features to a broader audience.

Rapid Growth and High Valuation

In April, Perplexity AI secured $62.7 million in funding from existing investors, including Nvidia, and new backers like Garry Tan, CEO of Y Combinator, and Brad Gerstner, founder and CEO of Altimeter Capital. This fundraising round valued the company at over $1 billion, doubling its valuation in just three months.

As Perplexity AI continues to grow and innovate, the introduction of ads on its platform could further solidify its position as a key player in the AI-powered search industry.