Perplexity has joined the anti-ad camp, distancing itself from ads due to concerns that users may not trust chatbots with an agenda to upsell. This move highlights an emerging crossroads for the AI industry, where major players are searching for stable sources of income to support massive spending.
The decision by Perplexity to phase out ads, which began late last year, marks a significant shift for the US startup. According to executives, the company is not currently exploring any new ad deals, as reported by Business Insider and the Financial Times on Monday at a roundtable event. This move contrasts with other AI giants, such as OpenAI, which is leaning into ads, while others like Anthropic have promised to keep them out.
The implications of Perplexity‘s decision will likely be closely watched by the AI industry, as companies navigate the delicate balance between generating revenue and maintaining user trust. As the sector continues to evolve, it remains to be seen how other companies will approach the issue of ads and whether Perplexity‘s strategy will pay off in the long run. With Nvidia, Ring, and other major players investing heavily in AI, the industry’s approach to ads and revenue will be crucial in determining its future trajectory.
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