New AI Search Startup Perplexity Attracts Bezos Backing to Take on Google

Lily Polanco Follow Jan 04, 2024 · 2 mins read
New AI Search Startup Perplexity Attracts Bezos Backing to Take on Google
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Google has dominated online search for well over a decade, but the rapid recent advances in artificial intelligence may soon pose the first real challenge to its supremacy. AI-powered search engine startup Perplexity announced $200 million in new funding this week from backers including Amazon founder Jeff Bezos, pushing its valuation to over $500 million.

With its conversational answer engine leveraging the latest natural language AI models, Perplexity has already grown impressively since its public launch just last year. It now boasts 10 million monthly active users and fields over 500 million search queries annually. The involvement of tech luminaries like Bezos and early Google executives signals Perplexity’s ambition to leverage AI to transform the search experience.

At its core, Perplexity streamlines the search process by providing direct answers to queries instead of just links to websites. This more natural conversational flow powered by AI promises to make finding information online much smoother. As consumer comfort with AI-enabled services grows, the appeal of this approach could draw more eyeballs away from traditional search engines.

Of course, tech Goliath Google still thoroughly dominates the search ecosystem with as much as 90% market share. And other tech giants like Microsoft have unsuccessfully tried to loosen Google’s grip for years. But the rapid advances in large language models over the past two years represent a genuine inflection point, evidenced by runaway user adoption of chatbots like ChatGPT.

This behavioral shift in how people seek out data and insights online is Perplexity’s open door. If its savvy application of AI to search queries truly delights people, it could markedly erode Google’s stranglehold. The involvement of web titans like Bezos lends further credibility to Perplexity’s audacious aim.

However, significant hurdles remain. Mushrooming excitement over chatbots has brought intensified scrutiny around issues like bias, misinformation, and copyright infringement. As a web search engine, Perplexity must grapple with these very same concerns but at massive scale from day one. There are also the towering infrastructure costs associated with operating AI systems behind consumer query volumes.

Nonetheless, between its virtuoso technical team and star-studded roster of backers, Perplexity looks well-positioned to become a formidable AI-powered Google rival over time. Few startups have both the talent and war chest needed to genuinely vie for the search crown. Perplexity’s flood of funding and support suggests it stands out from the pack.

The consumer thirst for AI assistance will only grow in the coming years. If Perplexity can harness conversational AI to provide delightfully intuitive search, it may plant the seeds for a new era less dominated by just one key player. For the first time in ages, the search throne appears up for grabs.

Key Takeaways:

  • AI search engine Perplexity raises $200M from Jeff Bezos and others, now valued at over $500M
  • Leverages natural language AI to deliver direct answers rather than just website links
  • Monthly active users tripled to 10M last year as it fielded 500M+ search queries
  • Aims to disrupt Google’s decade-long domination of search through AI innovation
  • Backing of luminaries like Bezos signals ambition to transform mainstream search
  • Hurdles include content issues, infrastructure costs, and Google’s entrenched position
  • With top talent and ample funding, Perplexity looks to shake up search long-term
Written by Lily Polanco Follow
Junior News Writer @