People are getting frustrated with Google search because they often have to tweak their queries multiple times to find what they need. About 30% of users end up redoing their searches, which shows that Google sometimes struggles to give accurate results right away.

Enter AI search engines, which promise more context-aware results. Perplexity AI is at the forefront of this innovation, leveraging advanced machine learning algorithms to enhance search accuracy. 

Perplexity AI brands itself as the “Swiss Army Knife for information discovery and curiosity.” But does it live up to this claim? How does it compare to ChatGPT, and will it replace traditional search engines? Let’s dive in and find out.

What is Perplexity AI?

Perplexity AI is an AI-powered conversational search engine designed to deliver accurate, real-time answers to any question by searching the web and compiling information from multiple sources. As of early 2024, Perplexity AI has served over half a billion requests and has 10 million active monthly users. 

Perplexity AI’s Products and Features 

Perplexity AI’s main product is an AI-powered conversational search engine that uses natural language processing (NLP) to deliver personalized, real-time search results with inline citations. You can access it on any web browser, or through mobile apps available on both Android and iOS. The app features Perplexity Copilot, a guided AI search assistant that enhances your search experience.

Additionally, Perplexity AI offers a handy Chrome extension. This lets you ask questions directly from the Chrome URL bar and get summarized answers instantly. Best of all, the extension is free and doesn’t require a subscription.

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How Does Perplexity AI Work?

Perplexity AI combines natural language processing (NLP), information retrieval, summarization, and generation techniques to provide its AI-powered search and question-answering capabilities:

• Natural Langauge Processing (NLP): Utilizes advanced NLP models like GPT-4 and custom large language models (LLMs) to understand and interpret user queries. This allows users to ask questions conversationally, rather than using rigid keyword-based searches.
• Transformer Architecture: Core NLP models such as GPT-4 and Claude are based on the transformer architecture, which uses an attention mechanism to effectively capture long-range dependencies and context in text, enhancing the models’ ability to understand and generate coherent responses.
• Web Crawling and Indexing: Uses web crawling techniques to continuously index and update its knowledge base with the latest information from the internet, ensuring search results are based on up-to-date data, unlike models trained only on static datasets.
• Information Retrieval: Utilizes information retrieval techniques such as keyword matching, semantic similarity, and ranking algorithms to identify and extract relevant information from its indexed web data.
• Multimodal Learning: For tasks like image analysis and generation, leverages multimodal learning techniques that combine text and visual data, allowing the system to understand and generate responses based on both textual and visual inputs.

Perplexity AI Pricing

Perplexity AI offers a freemium model, giving you access to its basic features for free using Anthropic’s Claude 3 Haiku model. 

If you want more advanced capabilities, you can opt for the “Pro” version, which costs $20 per month or $200 per year. This upgrade gives you access to powerful models like GPT-4, Claude 3, Mistral Large, and Llama 3.

In April 2024, Perplexity also introduced an enterprise version tailored for businesses. This version includes enhanced security and data retention features to meet corporate needs. For companies with fewer than 250 employees, the Enterprise Pro version is priced at $40 per month or $400 per year.

Perplexity AI Company Overview: Founder, Funding, Investors, and Valuation

Perplexity AI was founded in August 2022 by Aravind Srinivas, who serves as the CEO. The company has raised a total of $165 million in funding so far, with its latest funding round of $62.7 million in April 2024 valuing the company at over $1 billion. Notable investors in Perplexity include Daniel Gross, Stanley Druckenmiller, Y Combinator's Garry Tan, Figma CEO Dylan Field, Jeff Bezos, Nvidia, NEA, IVP, Sequoia, Bessemer, and others.

A Review of Perplexity AI’s Limitations: Hallucination, Plagiarism, and More

Despite Perplexity AI’s popularity and incredible growth, it has its limitations:

• Hallucination: The AI might generate plausible but incorrect or nonsensical answers that seem accurate.
• Plagiarism: Major news outlets like Forbes and CIBC have accused Perplexity AI’s news feature, Perplexity Pages, of content theft. For instance, an article about Eric Schmidt’s AI drone initiative on Perplexity Pages closely resembled a Forbes article, including nearly identical text and an illustration.
• Real-time updates: Although it uses web crawling for updates, there might still be a lag in incorporating the latest information. 
• Limited multimodal understanding: Its performance is limited when combining text and visual data for complex tasks.

Perplexity AI vs ChatGPT

While Perplexity is a combination of ChatGPT and search engines, it cannot replace the former. In summary, Perplexity AI excels in providing accurate, research-focused responses, while ChatGPT offers broad versatility and integration capabilities for a wide range of applications.

Perplexity AI API

Perplexity Labs offers an API that allows developers to integrate the company’s AI capabilities into their own products and services, enabling features like natural language processing, web search, and content generation. To get started:

1. Sign up for a Perplexity Pro subscription and create an API client and secret key from your account dashboard. 
2. Review the API documentation here. The "Getting Started" guide explains the different endpoints, parameters, and how to make API calls.
3. You can interact with the Perplexity API using various programming languages and tools. A popular option is to use an API client like Insomnia or Postman to test API calls during development. After testing, you can integrate the Perplexity API into your own applications, products, or services using the client libraries or making HTTP requests directly. 

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Frequently Asked Questions

Who Owns Perplexity AI? 

Perplexity AI is owned by Perplexity Labs, a company focused on developing advanced AI-driven research tools.

Perplexity AI Stock

Perplexity AI is a privately held company and does not currently offer stock to the public. As it is not listed on any stock exchange, there are no available stock options for investors.

Perplexity AI Promo Code 

Occasionally, Perplexity AI may offer promo codes for discounts or special offers. These codes are typically distributed through their official website, newsletters, or promotional campaigns.

Is Perplexity AI Free?

Yes, Perplexity AI offers a free tier for users. However, advanced features and multimodal capabilities are available through a pro subscription plan, which costs $20/month.