In a bold move to disrupt the internet search landscape dominated by Google, startup Perplexity has secured substantial backing from Jeff Bezos and venture capitalists, signaling a bet on the transformative power of artificial intelligence in reshaping online information discovery. Launched less than two years ago, Perplexity, operating from a San Francisco co-working space with fewer than 40 employees, has developed an "answer engine" that boasts around 10 million monthly users.

The significant achievement for Perplexity includes a whopping $74 million investment from Institutional Venture Partners, Jeff Bezos, and other tech executives, marking the most substantial funding for an internet search startup in recent years. With a valuation of $520 million, including the new investment, Perplexity aims to challenge Google's dominance by leveraging advances in AI to deliver direct answers to search queries, distinguishing itself from larger competitors.

Despite its modest user base compared to Google, which serves billions daily, Perplexity has gained traction, particularly among tech workers enthusiastic about embracing new services utilizing generative AI. The startup's website and mobile apps witnessed a surge in visits, reaching 53 million in November, up from 2.2 million in December 2022. This organic growth, driven by word of mouth and buzz within tech circles, demonstrates the appeal of Perplexity's AI-driven approach.

Noteworthy investors include Susan Wojcicki, former YouTube CEO, and Jeff Dean, Google's Senior Vice President for AI research, indicating that even Google executives recognize Perplexity's potential. However, the road ahead is challenging, as Perplexity faces the daunting task of competing with Google, which commands around 90% market share in online search.

Perplexity maintains its own webpage index, combining AI technology developed in-house with external solutions, such as those from OpenAI. The company offers a premium version of its search engine utilizing OpenAI's advanced GPT-4 technology, generating annual revenue between $5 million to $10 million from subscriptions and AI software sales.

While not yet profitable, Perplexity aims to navigate the challenges ahead by reducing costs as user numbers grow and analyzing user query patterns. The backing from industry players, including Jeff Bezos, showcases confidence in Perplexity's potential to evolve into a significant player in the competitive search engine landscape.