[INTERVIEW] Will Perplexity catch on amongst tech-savvy Koreans?

‘Reply engine’ to announce record of media companions by year-end

By Kim Bo-eun

Koreans are recognized for his or her lack of persistence. They’re additionally fast to strive no matter is trending. This is the reason Perplexity — known as the “Google challenger” — chosen Korea as a key market by partnering with the nation’s largest cellular provider, SK Telecom.

Though most Koreans could also be unfamiliar with the AI-powered search engine, Perplexity CEO Aravind Srinivas is assured that it has an opportunity right here, regardless of the dominance of Google and the native portal Naver.

Perplexity, co-founded in 2022 by Srinivas, a former OpenAI researcher, attracts content material from the online to offer summarized solutions with supply hyperlinks. It’s recognized for its conversational fashion, because it generates follow-up questions. This mechanism allows the solutions to turn into extra correct, which is why the CEO refers back to the platform as an “reply engine” relatively than a search engine.

With investments from large names together with AI chip large Nvidia and Amazon founder Jeff Bezos, the startup is now valued at $3 billion.

In the identical method it has joined palms with SK Telecom, Perplexity is increasing its world attain in Japan and Germany by telecom corporations that facilitate publicity to the comparatively new platform.

“(Our final goal is) to develop the marketplace for reply engines, create progressive enterprise fashions which can be differentiated from different AI chatbots and serve everyone on the planet,” Srinivas advised The Korea Occasions in an interview in Seoul, Wednesday.

The CEO was right here for a press convention with SK Telecom on the day. The latter has invested $10 million in Perplexity.

Difficult Google

The CEO’s objective is to make Perplexity a “multi-headed monster,” by which he means it ought to have numerous income streams.

“It’s tough, however when you have got it, it’s formidable,” he stated, referring to Google’s lack thereof.

“Regardless of it being a trillion-dollar firm at this time, it’s so susceptible as a result of nearly all of its income and income are coming from one specific enterprise — promoting.”

Presently, Perplexity has three income mechanisms: subscriptions, APIs and enterprise. The fourth can be adverts that may launch within the fourth quarter. Below this mannequin, advertisers can pay for sponsored follow-up questions advised on the platform. Getting into the advert trade, the brand new participant will compete head on with the behemoth Google.

Perplexity has a key benefit over its AI chatbot opponents. Licensing a mixture of AI fashions from OpenAI and others saves an organization the substantial prices of constructing its personal.

It seems Perplexity is provided for what it expects to be a showdown with Google. However the startup wouldn’t be referred to as the “Google challenger” if the problem was not actually difficult.

“Constructing a differentiated search expertise is already exhausting, however getting 100 million customers for it’s even more durable,” Srinivas stated.

“It’s additionally tough due to all of the distribution offers Google has signed with Apple and Samsung and so many others. And these telephones management a lot of the entry factors to go looking.”

Perplexity CEO Aravind Srinivas, left, shakes palms with SK Telecom CEO Ryu Younger-sang throughout a joint press convention on the SKT constructing in central Seoul, Wednesday. Yonhap

Information partnerships

Ever since Perplexity launched its Publishers’ Program in July, greater than 100 entities have inquired about partnerships, with lots of them becoming a member of, together with Fortune and Time, in accordance with the corporate.

Below this partnership, when the AI platform makes promoting income from a question that cited a supply from a selected writer, Perplexity shares the income with the writer.

“This has by no means been accomplished by a search engine. Search engines like google used the excuse that they’re supplying you with visitors and they didn’t pay any income. Really, they obtained all of the income with the clicks,” Srinivas stated within the press convention with SK Telecom.

“As an alternative we’re proposing a special method within the AI world — the visitors can be decrease but when we make income we are going to share it with you.”

Whereas the AI platform refers to information articles in its solutions, Perplexity has no plans to launch a separate information part.

“Information is a really small fraction of Perplexity’s utilization. They nonetheless come to the retailers as a result of they’re extra dependable and reliable. However when persons are searching for a abstract of what’s occurred or previous information within the context of what’s occurring, these are the sorts of issues folks come to Perplexity extra for. So we don’t see any angle the place we’re going to be the information supplier to folks,” the CEO stated.

Srinivas stated the corporate will unveil its record of stories companions however stated Perplexity is “initially centered on getting it proper within the American market.”

Income sharing can be decided by the kind of content material — unique content material that’s cited will assure income, however for a similar content material printed by many information retailers, the AI program will decide which article can be cited, the CEO stated.