By @indianexpress
Publication Date: 2026-02-19 15:05:00
2 min readNew DelhiFeb 19, 2026 08:35 PM IST
Perplexity, in a rather surprising turn of events, has boarded the anti-ad AI bandwagon. The AI startup says it has reversed the decision to show ads in its chatbot as it might erode user trust.
This is an interesting U-turn for the startup, as it was one of the first generative AI companies in the world to start testing ads back in 2024. These sponsored ads appeared below the chatbot’s answer.
According to the Financial Times, Perplexity had reportedly started phasing out ads late last year, with executives now saying that they have no plans to show ads, at least for now.
“A user needs to believe this is the best possible answer, to keep using the product and be willing to pay for it,” a Perplexity executive told the publication.
While Perplexity’s ads were labelled as sponsored and had no effect on the chatbot’s response, an executive said that “the challenge with ads is that a user would just start doubting everything… which is why we don’t see it as a fruitful thing to focus on right now.”
“We are in the accuracy business, and the business is giving the truth, the right answers,” another Perplexity executive told the publication.
With a valuation of around $18 billion, Perplexity reported it earned $200 million in revenue. While most of its money comes from subscriptions, it offers free services as well.
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