Following a strategic partnership announcement with SoftBank in April, Perplexity, the AI search engine aiming to challenge Google, is leveraging this deal to expand its user base in Japan. SoftBank, along with its mobile operations Y!mobile and LINEMO, will offer free, one-year subscriptions to Perplexity Pro, the premium tier of the AI search engine, starting June 19.
This initiative highlights Perplexity’s global aspirations and its strategy to generate revenue through its paid tier. Mobile carriers, like SoftBank, see partnerships with AI companies as a means to attract users interested in AI without the need to develop in-house models. This collaboration may also lead to additional AI-based services in the future. Such partnerships are reminiscent of early deals made by companies like Spotify with mobile carriers to grow their premium user base.
Global Partnerships
Perplexity’s collaboration with SoftBank is not an isolated case. In April 2024, the startup also partnered with Germany’s Deutsche Telekom. While it remains unclear if these carriers are investing directly in Perplexity, SoftBank’s focus on AI aligns with its broader ambitions, including potential investments in AI startups through its Vision Fund and plans for a $100 billion AI chip venture.
SoftBank has been exploring numerous AI opportunities, with its Vision Fund linked to potential deals involving OpenAI and Mistral. Additionally, SoftBank’s Japan business launched SB Intuitions, a venture focused on creating a Japanese-language Large Language Model (LLM). With Perplexity Pro, users can select their preferred LLM for search queries, enhancing their search capabilities.
In April, Perplexity secured $62.7 million in funding, doubling its valuation to $1 billion from three months prior. Reports indicate that the company is raising additional capital, potentially reaching a valuation of $2.5 billion to $3 billion. Investors in Perplexity include Bezos Expeditions, IVP, NEA, Sequoia, Nvidia, and Databricks, alongside notable individuals.
Perplexity Pro offers advanced features such as the ability to select from the latest LLMs for comprehensive searches and data processing. The service also includes a high-quality image generation feature based on search histories and an AI profile for personalized search results and chat-based support. The iOS app is priced at 3,000 yen per month or 30,000 yen annually, while the web version costs $20 per month or $200 per year.
Addressing Publisher Concerns
Perplexity has faced criticism from publishers regarding crediting sources in its answers. In response, the startup is working on revenue-sharing agreements to address these concerns and ensure fair compensation for content creators.
Perplexity’s partnership with SoftBank marks a significant step in its international expansion and commitment to leveraging AI for enhanced search capabilities. By offering a free subscription to Perplexity Pro, SoftBank aims to attract more users and potentially explore further AI collaborations. Substantial financial backing and innovative features position Perplexity to make a notable impact in the AI search engine market.
See also: Perplexity Enhances Search Features to Directly Display Information
