Alphabet’s Google is facing stiff competition in the search engine market from artificial intelligence. Perplexity, an AI-powered search startup, is reportedly raising $250 million at a valuation of $3 billion, with investors including SoftBank. Perplexity offers a free AI search product and a subscription option, serving 169 million queries per month.
Google remains dominant in the search engine market, but Perplexity’s ambitious growth suggests a potential challenge. SoftBank CEO Masayoshi Son is focusing on AI investments, with plans to create “artificial superintelligence” that surpasses human intelligence. SoftBank’s investment in Perplexity may be a step towards this goal, with plans to contribute $10 to $20 million.
Google has added generative AI features to compete with emerging rivals. A recent survey found 15% of users are already using alternative AI platforms for search, with a growing preference for non-Google options. Perplexity’s rapid growth and valuation highlight the increasing popularity of AI-powered search engines.
Overall, the competition in the search engine market is heating up as AI technology advances. Google must continue to innovate and improve its offerings to maintain its leadership position, as challengers like Perplexity and SoftBank’s focus on AI present potential threats to its dominance.
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https://www.barrons.com/amp/articles/alphabet-google-stock-ai-search-perplexity-abf5455c
