Why is Perplexity Negotiating with Mobile Manufacturers?
Perplexity AI is swiftly becoming a major player in the worldwide tech industry.
Its language model chatbot, Perplexity, is increasingly popular in various arenas due to its linguistic adeptness, research capabilities and problem-solving strengths, garnering widespread praise.
The company recently clinched over US$500mn in funding, spearheaded by investors such as Accel, pushing its valuation to US$14bn.
Since making its debut in late 2022, Perplexity has expanded its influence significantly, attracting two million daily users and 15 million active monthly users, bolstered by its Chrome extension and iOS application.
Having leveraged the infrastructures of Google and Apple to attain a substantial portion of the market, Perplexity now aims to dethrone these technology titans in the browser domain.
This week, CEO Aravind Srinivas revealed that the company is in talks with smartphone manufacturers to pre-install its Comet browser on devices, a strategic move aimed at exploiting the "stickiness" concept prevalent in browsing habits.
"It's not easy to convince mobile OEMs to change the default browser to Comet from Chrome," says Aravind.
Comet’s AI advancements
The stakes are high, considering Google Chrome's dominance of approximately 70% of the mobile browser market and Apple’s Safari and Samsung’s browsers take another 24%. However,
Aravind and his team are set on challenging the status quo.
Currently available in a beta version for desktops, Comet offers a Chromium-based architecture that is familiar to Chrome users, promising enhanced AI functionalities that might set it apart from other established browsers.
Google’s introduction of an AI browser feature this year, referred to as ‘AI Mode,’ positions it directly against Perplexity’s offerings, but Perplexity believes its language model has the upper hand over Google’s Gemini.
Aravind mentioned their target of reaching "tens to hundreds of millions" of users next year, contingent on the stable launch of the desktop version.
Challenges and market competition
The aspirations of Perplexity recall earlier efforts to disrupt browser market leaders, although resistance presents a formidable obstacle.
Despite Google’s dominance, Perplexity secured a win by having its app pre-installed on Motorola devices, albeit with Google Assistant still as the default.
Meanwhile, reports from Bloomberg suggest Perplexity is eyeing collaborations with Samsung and Apple to embed its AI search into their ecosystems, possibly enhancing voice-response assistants like Bixby or Siri.
There have also been talks of a potential acquisition, with Apple named as a possible buyer.
Whether Perplexity forms a partnership or is acquired by Apple, its AI could be pivotal in powering future iPhones, although confirmations are yet to materialise.
Investor confidence and strategic vision
Perplexity’s aggressive growth trajectory continues as planned.
Accel, alongside prominent figures in technology like Nvidia, Jeff Bezos, and former Google CEO Eric Schmidt, provide both financial backing and strategic guidance.
Addressing the Android market, Aravind did not lay out a precise timetable but mentioned in a recent AMA that the team is sprinting toward their goals.
As Perplexity continues its rapid ascent, a Comet app is anticipated soon.
Though capturing the web browser market is an ambitious aim, Perplexity is steadily establishing itself as a challenger to established norms, already making a name by defying expectations.
