Perplexity AI aims to rival Google

CNBC Television
5 Jan 202404:24

TLDRPerplexity, an AI-powered search engine startup, is poised to challenge Google's dominance with a paradigm shift in search technology. Backed by prominent figures like Jeff Bezos, the company has raised $74 million and aims to revolutionize the search experience with a focus on direct answers and user interface simplicity. As the industry transitions from traditional search to generative AI, Perplexity's multi-model approach and commitment to clarity and transparency may signal a new era in how users access information online.

Takeaways

  • 🚀 Perplexity, an AI-powered search engine start-up, is emerging as a strong contender to take on Google after raising significant capital.
  • 🌟 Prominent figures like Jeff Bezos are backing Perplexity, highlighting the shift in the search engine landscape due to advancements in generative AI.
  • 🗣️ The CEO of Perplexity emphasizes that the traditional search engine model, which has been dominated by Google, is outdated and in need of innovation.
  • 🔄 Perplexity aims to shift the focus from links and rankings to a more user-centric interface, addressing the shortcomings of current search engines.
  • 🤖 The new search engine relies on large language models, including GPT-4 and Google's Gemini, to provide a cleaner, minimal, and simpler user experience.
  • 🧠 Serena Bass, a Silicon Valley expert, suggests that generative AI has the potential to create consumer applications that could redefine the search market.
  • 🏆 The first-mover advantage in the generative AI age may not belong to Google, as data is the key factor, and other companies could leverage first-party data effectively.
  • 📈 The rise of consumer applications in generative AI is expected to challenge established players like Google, potentially leading to a more diverse market.
  • 🔧 Google's foundational technology is not necessarily behind, but the question remains whether they can adapt quickly to the changing landscape and user demands.
  • 🥇 The success of Perplexity and similar ventures will depend on their ability to create products that users find more appealing and user-friendly than existing options.

Q & A

  • What is the main focus of the start-up Perplexity?

    -The main focus of Perplexity is to compete with Google in the search engine market by leveraging the paradigm shift brought about by generative AI.

  • How has Google maintained its dominance in the search engine market?

    -Google has maintained its dominance by relying on its foundational technology and vast first-party data, which powers many of the large language models.

  • What does Perplexity aim to change about the current search engine landscape?

    -Perplexity aims to shift the focus from links and rankings to a cleaner, minimal, and simpler user interface that relies on advanced language models for providing more direct answers.

  • What are some criticisms of Google's current search engine as mentioned in the script?

    -The criticisms include that Google's search results are cluttered, filled with ads, and create too much cognitive overload for users.

  • How does Perplexity plan to utilize large language models like GPT-4 and Google's Gemini?

    -Perplexity plans to use these large language models to create a more streamlined and user-friendly search experience that provides direct answers without the clutter and cognitive overload.

  • What does the CEO of Perplexity believe about the future of winners in the AI age?

    -The CEO believes that there will be more than one or two winners in the AI age, and that companies with unique approaches and consumer applications will have a chance to succeed.

  • What is the significance of the first-mover advantage in the generative AI age?

    -In the generative AI age, the first-mover advantage is significant because it is tied to data. Companies with more first-party data, like Google, have an edge in developing and refining large language models.

  • What challenges does Perplexity face in trying to compete with established search engines like Google?

    -Perplexity faces challenges such as overcoming Google's entrenched market share and convincing users to adopt a new search platform that offers a different approach to finding information.

  • How does the script suggest the rise of consumer applications in the generative AI era?

    -The script suggests that 2024 will be a year focused on consumer applications, with companies getting closer to the consumer and offering more user-centric AI-driven products.

  • What is the potential impact of generative AI on the search engine market?

    -The potential impact of generative AI on the search engine market is significant, as it may lead to the development of better search experiences and could potentially disrupt the dominance of established players like Google.

  • What is the main concern about Google's ability to adapt to the generative AI era?

    -The main concern is whether Google can move fast enough to adapt its product to the new paradigm of generative AI and continue to meet the evolving needs and preferences of users.

Outlines

00:00

🚀 Perplexity: The New A.I. Search Engine Challenger

Perplexity, an A.I. powered search engine start-up, aims to compete with Google, having raised significant capital from renowned investors. The CEO discusses the shift in search engine paradigms, emphasizing the move from link-based rankings to a user interface focused on generative A.I. The company's strategy relies on large language models, including GPT-4 and Google's Gemini, to create a clean, minimal, and simple product. Perplexity's potential to redefine the search landscape is highlighted, as industry insiders predict a rise in consumer applications in the generative A.I. era.

Mindmap

Keywords

💡Perplexity

Perplexity refers to an AI-powered search engine start-up aiming to challenge Google's dominance. It is a company that has attracted significant investment and backing from prominent figures like Jeff Bezos. In the context of the video, Perplexity represents a paradigm shift in search technology, moving away from traditional link-based search to a more generative AI-driven approach.

💡Generative AI

Generative AI refers to the use of artificial intelligence to create new content, such as text, images, or audio. It is a technology that has the potential to change the way search engines operate by providing more intuitive and direct answers to user queries. In the video, the CEO of Perplexity explains that the shift to generative AI is a significant change in the search paradigm, which could lead to a new era of search engines that prioritize user experience and simplicity.

💡Search Engine

A search engine is a software system designed to search for information on the World Wide Web in a systematic manner. In the video, the discussion revolves around the evolution of search engines, with a particular focus on how Perplexity aims to compete with established players like Google by offering a new approach to search that is more aligned with the generative AI era.

💡Paradigm Shift

A paradigm shift refers to a significant change in the basic concepts and experimental practices of a scientific discipline. In the context of the video, it describes the transition from traditional link-based search engines to those powered by generative AI, which could fundamentally change how users interact with search platforms.

💡User Interface

The user interface (UI) is the space where interactions between humans and machines occur, and how users navigate and use the system. In the video, Perplexity's focus on a clean, minimal, and simple UI is highlighted as a key differentiator from existing search engines, which are seen as cluttered and causing cognitive overload for users.

💡Cognitive Overload

Cognitive overload occurs when the amount of information presented to an individual exceeds their cognitive capacity to process it. In the context of the video, it refers to the frustration users may feel when navigating complex and information-dense search engine results, which Perplexity aims to address with a more streamlined approach.

💡Large Language Models

Large language models are AI systems that process and generate human language in ways that mimic human-like understanding. These models are trained on vast amounts of data and can produce new text based on patterns they have learned. In the video, Perplexity relies on such models, including GPT-4 and Google's Gemini, to power its search engine and provide users with more direct and relevant answers.

💡Cloud Computing

Cloud computing is the delivery of computing services, such as storage, processing power, databases, networking, software, analytics, and intelligence, over the internet. In the video, it is suggested that Google might make a significant bet on cloud computing to maintain its position in the market as generative AI continues to evolve.

💡First Mover Advantage

The first mover advantage is a competitive advantage that early adopters of a new technology or industry can achieve. It refers to the benefits that companies can gain by being the first to enter a new market or to develop a new product. In the video, the concept is brought up to question whether companies like Google, which have dominated the market for a long time, will continue to be the winners in the era of generative AI.

💡Consumer Applications

Consumer applications refer to software programs or apps designed for use by the general public, as opposed to businesses or other organizations. In the context of the video, it is suggested that the focus in the generative AI age will shift towards developing consumer applications that are more closely aligned with user needs and preferences.

💡Data

Data refers to the collection of facts, statistics, or information used as a basis for reasoning, discussion, or calculation. In the video, data is highlighted as a crucial advantage in the generative AI age, with the first-party data being particularly valuable. It is suggested that companies with access to large amounts of data will have an edge in developing and refining AI models.

Highlights

Perplexity, an AI-powered search engine start-up, is looking to take on Google after raising 74 million with support from big names.

Google has been the dominant research entity for decades, with few start-ups having the significant capital to compete with them.

Perplexity is backed by high-profile ambassadors, including Jeff Bezos, and believes the generative AI shift has created a new paradigm in search.

Search has been about ten blue links for the last 20 years, but people just want an answer, which was a concept from the late 90s.

Perplexity aims to move search from links-based algorithms to a more user-centric interface.

Google's bread and butter, search, has not transitioned quickly enough to the generative AI era.

Serena Bass criticizes Google's experiments as cluttered and filled with too much cognitive overload for users.

Perplexity is creating a clean, minimal, and simple product that relies on large language models like GPT-4 and Google's Gemini.

The generative AI shift last year was all about enabling the models and chips in cloud computing.

Serena Bass and others in Silicon Valley believe we will see the rise of consumer applications, potentially making companies like Google not the winners this time.

The first mover advantage in the generative AI age is being questioned, with the potential for new entrants to disrupt the market.

Despite Google's vast first-party data, there may be more than one or two winners in the AI space, according to Perplexity's CEO.

Google's position may be challenged by the generative AI hype cycle, with questions about its ability to adapt and create products users want.

Open AI and ChatGPT have been able to front run Google on the generative AI front.

Perplexity's product aims to avoid the rigamarole of traditional search engines, providing a more straightforward user experience.

Sequoia published a piece stating that companies will either need to be close to cheap compute power or the consumer.

There is a belief that many companies will get closer to the consumer this year, potentially leading to new market dynamics.

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