Understanding Perplexity: Insights into the 'Answer Generator' Machine
Perplexity AI, the AI-powered search engine, has made significant strides since its inception in August 2022. The platform, founded by Aravind Srinivas, Denis Yarats, and Andy Konwinski, has grown from 2 million monthly active users in March 2023 to approximately 22 million as of August 2025.
Perplexity's latest version, 2.250731.0, released on August 7, 2025, incorporates the OpenAI GPT-5 model, improving answer quality and adding new features such as video generation and inline playback. This update has further solidified Perplexity's position as a highly successful search engine, generating around $100 million in annual recurring revenue and valued at approximately $14 billion to $20 billion.
One of the standout features of Perplexity is the Pro search toggle, which allows users to run up to three Pro searches per day that dig through twice the number of websites compared to regular "quick" searches. The Pro subscription, priced at $20 per month or $200 per year, offers advanced features like unlimited quick searches, 300 Pro searches per day, and unlimited file uploads.
Perplexity differentiates itself from traditional search engines like Google by providing information directly, rather than a list of sites. This approach has been well-received, with users praising the platform's efficiency and ease of use.
However, Perplexity's success has not been without controversy. Multiple major media companies, including Forbes, Conde Nast, The New York Times, Dow Jones, New York Post, BBC, and NewsCorp, have accused Perplexity of unauthorized data scraping and copyright violations between 2024 and 2025. These allegations include "willful infringement" from Forbes' Chief Content Officer Randall Lane, cease-and-desist orders from Conde Nast and The New York Times, and a lawsuit from NewsCorp over allegations of copyright infringement on a "massive scale."
In response, Perplexity has expressed openness to revenue-sharing models and, as of August 2025, announced plans to pay media publishers millions of dollars to share search revenue, aiming to address these legal challenges and establish fair compensation.
Looking forward, Perplexity is planning continuous biweekly updates adding functionalities like booking tables via OpenTable and price alerts for products, as well as the launch of its own AI browser named Comet. The platform is also involved in strategic moves such as an unsolicited $34.5 billion bid to acquire the Google Chrome browser amid ongoing antitrust cases against Google.
To try Perplexity, visit perplexity.ai. A free account is required to save chat search history. The app edition of Perplexity offers essentially the same functionality as the web version, but with a streamlined interface designed to prevent distractions.
[1] https://www.businessinsider.com/perplexity-ai-valuation-2025-8 [2] https://techcrunch.com/2025/08/07/perplexity-ai-releases-new-version-with-openai-gpt-5-integration/ [3] https://www.reuters.com/business/perplexity-ai-bids-google-chrome-amid-antitrust-cases-2025-8-27/ [4] https://www.wsj.com/articles/perplexity-ai-plans-to-pay-media-publishers-millions-to-address-copyright-issues-11631840534 [5] https://www.cnbc.com/2025/08/10/perplexity-ai-announces-revenue-sharing-plans-to-address-copyright-issues.html
Technology has played a significant role in the rapid growth of Perplexity, with the integration of the OpenAI GPT-5 model in Perplexity's latest version (2.250731.0) contributing to its improved answer quality and the addition of features like video generation and inline playback.
In response to controversy surrounding unauthorized data scraping and copyright violations, Perplexity has announced plans to pay media publishers millions of dollars as a means to address these legal challenges and establish fair compensation.
