Summary:
Perplexity, an AI search startup, has attracted interest from Meta and Apple amid fierce AI competition
Offers AI-powered search with quick and pro modes, plus a $20/month tier for advanced features
Faces challenges from ChatGPT dominance and content use controversies
Potential acquisition could help Apple and Meta catch up in the AI race
AI is seen as the next major tech evolution, with giants scrambling to lead
The AI Startup Catching Tech Giants' Eyes
A nearly three-year-old AI startup, Perplexity, has reportedly caught the attention of Meta and Apple, highlighting the intense competition for AI talent and the race to lead the next major evolution of the internet.
What is Perplexity?
Perplexity is an AI-powered search engine that curates answers by parsing web content, providing summaries with source links. Founded in August 2022, it offers two search modes: quick search for general queries and pro search for detailed responses. The free tier allows three pro searches daily, while the $20/month paid tier unlocks more AI models, unlimited file uploads, and image generation.
Why Meta and Apple Are Interested
- Meta discussed acquiring Perplexity in late April or early May, though no deal was reached.
- Apple internally debated acquiring Perplexity, with talks still in early stages.
Both companies are seen as lagging in AI compared to rivals like Google and OpenAI. A Perplexity acquisition could bolster their AI capabilities, especially as Apple explores integrating an AI-powered search engine into Safari.
Challenges and Controversies
Perplexity faces stiff competition from ChatGPT, which dominates AI chatbot downloads. It's also embroiled in controversies over content use, with the BBC and Dow Jones accusing it of unauthorized content copying.
The Bigger Picture
Tech giants view AI as the next leap forward, akin to the internet and smartphones. For Apple and Meta, staying relevant in AI is crucial. Whether they can innovate in this space may define their future success.
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