AI search startup Perplexity AI is moving away from ads and doubling down on subscriptions and enterprise clients, aiming to turn its rapid growth into sustainable revenue.
Perplexity Focuses On Enterprise Sales And Subscriptions
At a roundtable with reporters on Monday, Perplexity executives said the company is focusing more on monetization than ever before, targeting high-powered professionals such as finance experts, doctors, and CEOs, according to a report by Business Insider.
"Perplexity will focus more on revenue and revenue retention than on other metrics, such as the number of questions it answers," one executive said.
The startup, which reached $200 million in annual recurring revenue (ARR) by October 2025, has also expanded its enterprise offerings, allowing businesses to generate research reports from internal and external data.
The company currently has a five-person enterprise sales team, with plans to grow it in the coming months.
Perplexity previously experimented with ads in 2024, but the initiative stalled.
"One consistent issue with ads in AI-generated answers is that users won’t believe them," the executive added.
The company emphasized that it will continue offering free access with rate limits.
Perplexity AI CEO Warns On On-Device AI And Misuse
Earlier, Perplexity AI drew attention as CEO Aravind Srinivas, backed by Jeff Bezos and Nvidia Corp. (NASDAQ:NVDA), warned that AI running on personal devices could disrupt centralized data centers and reduce infrastructure spending.
He explained that on-device AI could learn from repeated tasks, adapt over time, and automate user activities, giving individuals more control over their intelligence.
Srinivas also cautioned against misusing Perplexity's AI browser, Comet, after viral posts showed it completing a Coursera assignment in seconds and a 100-question exam in minutes.
Designed to navigate complex workflows, Comet's capabilities raised security concerns after audits by Brave and Guardio revealed vulnerabilities.
In business news, Perplexity struck a $400 million deal with Snap Inc. (NYSE:SNAP) to integrate its AI search engine into Snapchat, giving users access to conversational answers from verified sources and marking the start of revenue contributions in 2026.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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