The Anti-Ad Shift
Perplexity has made a surprising U-turn on its monetization strategy. After becoming one of the first generative AI companies to test ads on its platform in 2024, the startup is now phasing out advertising entirely.
"The challenge with ads is that a user would just start doubting everything... which is why we don't see it as a fruitful thing to focus on right now," an unnamed executive told the Financial Times.
The Trust Equation
Perplexity's pivot sets it firmly on the anti-ad side of the industry's emerging divide. The company is betting that users will pay for accuracy and trust rather than accepting ad-supported results.
"We are in the accuracy business, and the business is giving the truth, the right answers," the executive added.
The Great AI Monetization Divide
The move highlights a fundamental question facing AI companies: how to generate sustainable revenue without compromising user trust.
- Anti-ad camp: Perplexity and Anthropic (which has committed to keeping Claude ad-free)
- Pro-ad camp: OpenAI, which started testing advertising for free ChatGPT users last week
What's Next for Perplexity
Rather than ads, Perplexity will focus on producing something consumers are "willing to pay for"—specifically targeting business customers and high-powered users like finance professionals, lawyers, doctors, and CEOs.
While executives didn't rule out a return to advertising in the future, they believe serving ads was "misaligned with what the users want" and may not be needed for the company to thrive.
Published via Dakik AI Blog Pipeline
