Jeff Bezos invests in AI-powered startup: Can Perplexity challenge Google? (2024)

Synopsis

Amazon CEO Jeff Bezos has invested in Perplexity, which can challenge Google. It works as a chatbot-style search engine that responds to queries using OpenAI’s GPT technology. It has been reported that it produces a direct text response to questions, rather than website links, using information from online sources. Know in detail.

Jeff Bezos invests in AI-powered startup: Can Perplexity challenge Google? (1)ET Spotlight

Jeff Bezos has invested in a start-up that challenges the dominance of search engine Google. It is not known how much the Amazon boss has paid, but $74 million has been invested in Perplexity. The start-up that uses artificial intelligence to change the way people look for information online has been valued at $520 million. Its product is a forum to "ask anything" which its San Francisco-based team of less than 40 calls an "answer engine."

Chatbot-style search engine

According to the Wall Street Journal, Perplexity works as a chatbot-style search engine that responds to queries using OpenAI’s GPT technology. It has been reported that it produces a direct text response to questions, rather than website links, using information from online sources, which it includes along with its answer.


Challenges Google

Talking to the Wall Street Journal, CEO Aravind Srinivas said,

"If you can directly answer somebody’s question, nobody needs those 10 blue links." He said that a more powerful version of Perplexity’s search engine that uses GPT-4, OpenAI’s most advanced technology, can be accessed for $20 a month.

In an article published on its official website, Perplexity has written, "We’ve raised $73.6 million in Series B funding from trusted VC firms and prominent tech visionaries. IVP led the round with continued support from our Seed and Series A investors NEA, Elad Gil, Nat Friedman, and Databricks, as well as new investors NVIDIA, Jeff Bezos (through Bezos Expeditions Fund), Tobi Lutke, Bessemer Venture Partners, Naval Ravikant, Balaji Srinivasan, Guillermo Rauch, Austen Allred, Factorial Funds, and Kindred Ventures, among others."

Wall Street Journal has also found that 10 million people use Perplexity's website and mobile app monthly. It raked in 53 million visits in November alone, up from 2.2 million when the service first became available in December 2022.


FAQs:

How is Jeff Bezos supporting Perplexity?
Jeff Bezos has invested in a start-up that challenges the dominance of search engine Google. It is not known how much the Amazon boss has paid, but $74 million has been invested in Perplexity. The start-up that uses artificial intelligence to change the way people look for information online has been valued at $520 million.

How does Perplexity work?

Perplexity works as a chatbot-style search engine that responds to queries using OpenAI’s GPT technology. It has been reported that it produces a direct text response to questions, rather than website links, using information from online sources.

(You can now subscribe to our Economic Times WhatsApp channel)

Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.

(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.)

Download The Economic Times News App to get Daily International News Updates.

...moreless

(You can now subscribe to our Economic Times WhatsApp channel)

(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.)

Download The Economic Times News App to get Daily International News Updates.

...moreless

Jeff Bezos invests in AI-powered startup: Can Perplexity challenge Google? (2024)

FAQs

Jeff Bezos invests in AI-powered startup: Can Perplexity challenge Google? ›

Founded in August 2022, Perplexity aims to challenge Google by offering an AI-based search engine that is “part chatbot and part search engine, offering real-time information and footnotes showing the sources of its answers,” as its website states.

Did Jeff Bezos invest in Perplexity AI? ›

Jeff Bezos' investment has nearly doubled in the company in just a few months as Perplexity AI has reached 10 million monthly active users. Amazon founder Jeff Bezos has heavily bet on Perplexity AI, a startup that is taking on the search giant Google.

What AI is Jeff Bezos investing in? ›

Yet Amazon founder Jeff Bezos recently placed a bet on Perplexity AI, a startup that, despite the daunting odds, is taking on the search giant. “Startups are all about being bold,” Perplexity CEO Aravind Srinivas recently told Fortune.

Who has invested in Perplexity AI? ›

He also revealed that the company had raised $73.6 million from venture capitalists, companies including Nvidia, and various angel investors—as well as Jeff Bezos, through his Bezos Expeditions Fund. The funding round valued Perplexity at about $520 million.

What tech stock is Jeff Bezos investing in? ›

7 Stocks Jeff Bezos Is Buying
StockMarket capitalizationYear-to-date performance as of April 11
Sana Biotechnology Inc. (SANA)$2.1 billion129.4%
Uber Technologies Inc. (UBER)$160 billion23.7%
Workday Inc. (WDAY)$70.6 billion-2.7%
Amazon.com Inc. (AMZN)$1.9 trillion24.4%
3 more rows
Apr 12, 2024

Is Perplexity AI profitable? ›

Despite its rapid growth, Perplexity AI is not yet profitable.

What AI company did Bill Gates invest in? ›

Gates' unsurprising top AI stock

You probably won't be surprised in the least by Gates' top AI stock. Almost 34% of the Gates Foundation Trust's portfolio is invested in Microsoft (MSFT 2.22%). The billionaire co-founded the technology company and served as its CEO for 25 years.

Which AI did Google buy? ›

DeepMind Technologies Limited, doing business as Google DeepMind, is a British-American artificial intelligence research laboratory which serves as a subsidiary of Google. Founded in the UK in 2010, it was acquired by Google in 2014.

Who owns the most AI? ›

As of December 2022, Baidu was the largest owner of active machine learning and artificial intelligence (AI) patent families worldwide with 13,993 active patent families owned.

Who is behind Perplexity AI? ›

Perplexity was founded in 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho and Andy Konwinski, engineers with backgrounds in back-end systems, AI and machine learning. Yarats, the CTO, was an AI research scientist at Meta, while Srinivas, the CEO, worked at OpenAI as an AI researcher.

Is Perplexity better than ChatGPT? ›

Perplexity AI vs ChatGPT: Which is Better? Perplexity AI and ChatGPT both excel in different areas. Perplexity is better at providing accurate and up-to-date information, drawing upon reliable sources from the internet and citing them for verification.

Why is Perplexity better than Google? ›

For Depth and Exploration: Google Search is unbeatable for comprehensive research across a broad information spectrum. For Quick, Informed Answers: Perplexity shines when you need concise summaries and are willing to explore a new approach to information retrieval.

What is Mark Zuckerberg investing in? ›

Meta CEO Mark Zuckerberg unnerved investors on the company's quarterly earnings call Wednesday by focusing on its long-term investments in AI and the metaverse.

What stocks does Bill Gates own? ›

CURRENT PORTFOLIO
TickerCompany% Portfolio
MSFTMicrosoft Corp.33.98%
BRK.BBerkshire Hathaway Inc.16.80%
CNICanadian National Railway Co.16.29%
WMWaste Management Inc.14.92%
18 more rows
Mar 12, 2024

Is Perplexity on the stock market? ›

Is Perplexity publicly traded? Perplexity is not currently publicly traded. The company is still very young, founded in August 2022 by Andy Konwinski, Denis Yarats, Johnny Ho, and Aravind Srinivas.

Did Amazon invest in AI? ›

Amazon completes $4B Anthropic investment to advance generative AI.

What is the valuation of Perplexity AI? ›

Perplexity AI, a startup using artificial intelligence to build a search engine to compete with Alphabet Inc.'s Google, has raised about $63 million in a new funding round that values the company at more than $1 billion.

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Virgilio Hermann JD

Last Updated:

Views: 6304

Rating: 4 / 5 (41 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Virgilio Hermann JD

Birthday: 1997-12-21

Address: 6946 Schoen Cove, Sipesshire, MO 55944

Phone: +3763365785260

Job: Accounting Engineer

Hobby: Web surfing, Rafting, Dowsing, Stand-up comedy, Ghost hunting, Swimming, Amateur radio

Introduction: My name is Virgilio Hermann JD, I am a fine, gifted, beautiful, encouraging, kind, talented, zealous person who loves writing and wants to share my knowledge and understanding with you.