Perplexity AI Business Model

Perplexity AI is an AI-powered search engine and chatbot that uses a large language model to generate natural language text. It balances accuracy and creativity, providing reliable information with personality. It offers free access and raised funding for future development. Users can create custom chatbots and share/embed them.

Foundational Layer

  • Search Process: Perplexity AI searches the entire Internet to find relevant sources and information using a Bing-based retrieval system.
  • Language Model Analysis: Perplexity AI uses a large language model (LLM) to analyze inputs and retrieved sources, generating answers in natural language.
  • Striking a Balance between accuracy and creativity: Perplexity AI aims to balance accuracy and creativity, providing factual information with added personality and flair.
  • Trust and Citations: Perplexity AI provides links and sources for answers, showing related topics and keywords, ensuring validity and credibility.

Value Layer

User-Centric Approach: Perplexity AI helps users find relevant and reliable information using natural language processing and machine learning.

Distribution Layer

  • Free Access Model: Perplexity AI offers free access to the chatbot via web browser or app store, without signup or subscription fees.
  • Fundraising: Perplexity AI raised $26 million in series A funding in March 2023 to support future business model development.

Financial Layer

  • Custom Chatbot Services: Perplexity AI offers customized chatbot services with different language models and fine-tuning options.
  • Sharing and Embedding: Users can share and embed their Perplexity AI chatbots on websites or apps.

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