Perplexity AI, a startup specializing in AI-assisted search, plans to introduce search ads in its app by the fourth quarter of this year. Despite its recent success, including over two million app downloads and 230 million monthly queries, the company faces criticism for allegedly plagiarizing content from media outlets.
In response to the allegations, Perplexity AI updated its Pages feature to better cite sources. The company has also launched a revenue-sharing model that compensates publishers when their content generates ad revenue. Media outlets like Fortune and Time have already joined this program.
Perplexity AI raised its valuation to over $1 billion in April and now aims to expand its advertising offerings. Initial ad categories will include technology, health, finance, and more. The company will use a CPM (cost per thousand impressions) model, with rates exceeding $50, significantly higher than the industry average.
The growing popularity of AI-assisted search has raised concerns among investors, particularly about its potential impact on Google. The tech giant has already responded by integrating AI features like “AI Overviews” in its search results.
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