Perplexity AI to introduce advertising on search platform
Presently, the AI-powered search engine space is still in its infancy, opening a massive market for new players
Perplexity AI, backed by Jeff Bezos and Nvidia, has announced its intention to initiate advertisement on its AI-based search engine platform by the fourth quarter of the year. Last month, the company rolled out a publisher’s program with partners comprising IME, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and WordPress.
The AI-powered search engine space is still in its infancy, opening a massive market for new players. Among the big tech giants, Google has integrated AI in its search by providing AI-generated summaries or overviews for each search request. Meanwhile, its rival Microsoft has integrated OpenAI technology and launched the AI-powered Bing.
Why does it matter?
This move can potentially threaten Google’s dominant position in the industry. Through its search engine supremacy for two decades, Google became one of the world’s most valuable companies through its ad-based revenue model. Since ChatGPT launched, existing and upcoming search engines have attempted to integrate AI into web search and bring about a new business model in the search engine space.
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