Shots Fired: Perplexity CEO Aravind Srinivas takes a dig at Google for 'rebranding AI offerings'

Google’s unveiling of AI-summarized search results may be making waves, but for Aravind Srinivas, CEO and co-founder of Perplexity AI, it’s just another day in the world of AI-driven search. With Perplexity AI having already offered a popular AI-driven search tool providing similar digests for nearly two years, Srinivas seems unfazed by Google’s latest move.

“In a world where everyone gets answers and doesn’t have to click on links, the biggest loser is Google,” Srinivas candidly remarked during an interview with Axios’ Kia Kokalitcheva at Axios BFD San Francisco.

Taking a subtle jab at Google’s marketing manoeuvres in response to the rise of OpenAI’s ChatGPT over the past 18 months, Srinivas gently mocked the company’s branding shifts. “A year ago, it was called ‘search generative experience.’ Today it’s called ‘AI overview.’ And I bet next year it’ll be called something else. It’s exactly the same story of them doing a new messaging app every year,” he quipped.

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Srinivas also scrutinized Google’s business model, pinpointing the inherent conflict between serving users and advertisers. “The one thing that Google got wrong is that the same unit of information that stands for truth, which is the links, is also the same unit of information that the advertiser bids on. So that’s where there’s a conflict between serving the user and serving the advertiser,” he elaborated.

While Perplexity is also exploring revenue from advertising, Srinivas emphasized their commitment to ensuring ads never compromise the delivery of accurate answers. “Ads should never come at the cost of serving a correct answer,” he emphasized.

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On the flip side, Google has consistently maintained that ad dollars do not influence search results. However, the proliferation of sponsored results over time has blurred the line between organic and sponsored content.

Despite the challenges, Perplexity continues to thrive, recently announcing a substantial fundraising milestone of $62.7 million, bringing their total fundraising to $164 million and valuation to over $1 billion. Srinivas explained that AI startups continue to attract significant investment due to the necessity of recruiting top talent, which comes at a premium.

In a lighthearted moment, Srinivas reflected on the unpredictability of the tech industry, referencing Inflection AI’s aspirations to build a multi-billion dollar public company at a previous BFD event, only to later dissolve and join Microsoft. “Famous last words,” he quipped, refusing to make any bold predictions about Perplexity’s future in the public arena.

Google’s initiative to introduce AI-summarized search results may appear groundbreaking to some, but for Aravind Srinivas, CEO and co-founder of Perplexity AI, it’s just another day in the realm of AI-driven search. With Perplexity AI having offered a popular AI-driven search tool providing similar digests for nearly two years, Srinivas sees his company as a seasoned veteran in the field.

“In a world where everyone gets answers and doesn’t have to click on links, the biggest loser is Google,” remarked Srinivas during Axios’ Kia Kokalitcheva’s interview at Axios BFD San Francisco. Drawing from his experience as a research intern at Google from 2020 to 2021, Srinivas gently critiqued the tech giant’s branding strategies and response to the ascent of OpenAI’s ChatGPT.

“A year ago, it was called ‘search generative experience.’ Today it’s called ‘AI overview.’ And I bet next year it’ll be called something else. It’s exactly the same story of them doing a new messaging app every year,” quipped Srinivas, shedding light on Google’s ever-evolving approach to branding.

Srinivas also directed his attention to Google’s business model, highlighting the inherent conflict between serving users and advertisers. While Perplexity is exploring advertising revenue, Srinivas stressed their unwavering commitment to ensuring ads never compromise the delivery of accurate answers. “Ads should never come at the cost of serving a correct answer,” he asserted.

On the other hand, Google has consistently maintained that ad dollars do not influence search results. Nevertheless, the proliferation of sponsored results over time has blurred the line between organic and sponsored content.

Despite the obstacles, Perplexity is pressing forward, recently celebrating a significant fundraising milestone of $62.7 million, elevating their total fundraising to $164 million and valuation to over $1 billion. Srinivas elucidated that AI startups continue to attract substantial investment due to the premium attached to recruiting top talent.

Reflecting on the unpredictable nature of the tech industry, Srinivas shared a lighthearted moment when discussing the fate of other AI startups. Referencing Inflection AI’s ambitious goal to build a multi-billion dollar public company at a previous BFD event, only to later dissolve and join Microsoft, Srinivas quipped, “Famous last words.” However, he remained reserved about Perplexity’s future, refraining from making any bold predictions about going public.