Perplexity AI Gains Traction by Understanding Business Needs
Perplexity AI, once a scrappy startup in the shadow of OpenAI and Google, is gaining traction in the generative artificial intelligence (GenAI) race. Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.
Strategic Partnerships and Expansion
With a string of deals spanning Samsung, PayPal, SoftBank and others, as well as reported talks with Apple, Perplexity AI is aggressively expanding its footprint across both enterprise and consumer markets.
Its most recent partnerships include the following:
PYMNTS Intelligence data shows that companies are stepping up their investments in AI, with 90% of CFOs reporting "very positive" ROI in December 2024, triple the number of respondents who said the same nine months earlier. They are using GenAI to enhance productivity rather than to replace human workers entirely.
Perplexity’s strategic alliances position the AI startup for growth despite not enjoying the household name recognition of Sam Altman, OpenAI’s CEO, nor the cachet of the Google and Microsoft brand names. Perplexity CEO Aravind Srinivas was not among the invitees when the White House hosted top AI experts under both Biden and Trump.
Technical Flexibility and Business Focus
Large enterprises are choosing Perplexity due to its unique approach. "Perplexity has shown that being a model 'polyglot' can create more strategic advantages than owning the best single model," said Dev Nag, founder and CEO of QueryPal.
Unlike its larger AI rivals, Perplexity's chatbot can switch between different models, providing a more user-focused experience. This approach allows the startup to handle a large volume of queries efficiently without incurring excessive costs.
Market Position and Future Outlook
While still smaller than OpenAI, Perplexity is carving out a niche as a research-focused alternative to general-purpose AI assistants. The company's emphasis on transparency, agility, and actionability is resonating with high-value users.
"Perplexity’s bet is that fact-checking transparency and agentic capabilities can capture enough high-value queries to build a sustainable business, even without toppling the giants," Nag said.
