Perplexity AI Negotiating to Pre-Install AI in Mobile Phones
Perplexity AI is increasingly asserting its presence in the tech world.
The company’s main offering, its LLM chatbot simply named Perplexity, is renowned for its adeptness in language processing, research and problem-solving, making it a popular choice in diverse settings.
Following a substantial funding boost of more than US$500mn led by Accel and other prominent investors, Perplexity now stands at a valuation of US$14bn.
Since its launch in late 2022, Perplexity has been expanding its footprint significantly, now serving two million daily users and amassing 15 million active users monthly, bolstered by extensions such as a Chrome add-on and an iOS application.
Having utilised Google and Apple’s platforms to capture a significant share, Perplexity now aspires to challenge these titans directly in the web browser market.
This week, Perplexity CEO Aravind Srinivas discloses to Reuters that talks are underway with various smartphone manufacturers to pre-install its new AI-driven Comet browser on their devices.
This move aims to exploit the industry’s notion of browser ‘stickiness’, which describes users' tendency to stick with default browsers on their devices.
“It’s not easy to convince mobile OEMs [original equipment manufacturers] to change the default browser to Comet from Chrome,” Aravind explains.
Comet’s AI-driven potential
The competitive stakes are high with Google Chrome currently leading at about 70% of the mobile browser market, while Apple’s Safari and Samsung’s browsers account for another 24% combined.
Nonetheless, Aravind and his Perplexity team remain committed to achieving positioning dominance.
Although Comet is currently in beta on desktop platforms only, it holds substantial promise for users.
Leveraging the Chromium architecture, Comet offers a user experience similar to Chrome, with the addition of advanced AI functionalities, distinguishing it from other established browsers.
Google has introduced an ‘AI Mode’ feature in its own browser this year, yet Perplexity believes in the superiority of its LLM over Google's Gemini.
Aravind shared with Reuters that the company aims to advance user engagement to 'tens to hundreds of millions’ within the next year, following the desktop version's initial stability tests.
Historical echoes and competitive hurdles
Perplexity’s goals echo past efforts to disrupt browser monopolies, but it faces strong opposition from existing market leaders.
Earlier this year, Dmitry Shevelenko, Chief Business Officer of Perplexity, highlighted the challenges posed by Google’s practices by testifying in Google’s antitrust proceedings.
Despite Google’s dominance, Perplexity has achieved considerable success, securing pre-installation of its primary application on Motorola devices, although Google Assistant remains Motorola’s default assistant.
Reports in June by Bloomberg indicated that Perplexity also seeks collaboration with Samsung Electronics and Apple, potentially integrating its AI search capabilities to enhance devices and smart assistants like Bixby or Siri.
Speculation about a potential acquisition has included Apple showing interest in potentially purchasing Perplexity.
Whether through partnership or acquisition, Perplexity’s AI model could soon influence all iPhone models, although formal agreements remain pending.
Financial support and expanding horizons
For now, Perplexity’s swift expansion continues unimpeded.
Supported by investors such as Accel, Nvidia, Jeff Bezos and ex-Google CEO Eric Schmidt, Perplexity benefits from both capital and strategic input.
Referring to plans for Android users, Aravind notes in a recent AMA that while no exact timeline is available, the “team is sprinting".
Reflecting Perplexity’s brief yet dynamic history, the coming months are expected to proceed at high speed, with the Comet app soon to make its entrance.
Though pursuing market leadership in the web browser space resembles an ambitious goal, Perplexity’s track record shows a persistent ability to challenge expectations.
