Google can’t lead AI search revolution due to ad revenue dependence: Perplexity CEO

During a recent Reddit AMA, Aravind Srinivas, CEO of AI-powered search startup Perplexity, claimed that Google’s dependence on advertising revenue is preventing it from fully embracing an AI-first search future, as highlighted in an Analytics India Magazine report titled “Google Has Had Two Years to ‘Kill’ Perplexity — and It Hasn’t.”

As Google ramps up its AI efforts with the Gemini 2.5 models and AI-enhanced search features, Srinivas said, “They’ve (Google) had two years to kill Perplexity and haven’t.” 

Valued at $9 billion, Perplexity is challenging Google’s dominance in search by offering direct, AI-generated answers rather than traditional link-based results. 

Unlike Google, which monetises clicks through ads, Perplexity relies on subscription revenue and is experimenting with ad-sharing models for publishers. “Google’s business model is tied to links and ads,” Srinivas said. “AI responses that skip the clicks threaten that foundation.” 

He pointed out that features like Google’s AI Overviews, while innovative, are cautiously integrated to protect ad revenue, limiting their disruptive potential.

Srinivas revealed plans for “Comet,” a browser-like tool to expand Perplexity’s reach beyond search. “It’s about owning our distribution and giving users more control,” he said, acknowledging delays but promising a rollout soon. 

In the past, Perplexity has faced accusations of plagiarism from publishers like The New York Times.

On the other hand, in a recent podcast with Nikhil Kamath, Srinivas said that Meta’s core strength lies in its ad-driven ecosystem of social connections, which remains intact even as AI evolves. 

He added, “In fact, AI could supercharge Meta’s business, making its advertising more precise, personal, and indispensable.”