2 min learnNew DelhiFeb 19, 2026 08:35 PM IST
Perplexity, in a moderately stunning flip of occasions, has boarded the anti-ad AI bandwagon. The AI startup says it has reversed the choice to point out advertisements in its chatbot as it would erode consumer belief.
That is an fascinating U-turn for the startup, because it was one of many first generative AI corporations on this planet to begin testing advertisements again in 2024. These sponsored advertisements appeared beneath the chatbot’s reply.
In keeping with the Monetary Occasions, Perplexity had reportedly began phasing out advertisements late final yr, with executives now saying that they don’t have any plans to point out advertisements, not less than for now.
“A consumer must consider that is the absolute best reply, to maintain utilizing the product and be keen to pay for it,” a Perplexity govt informed the publication.
Whereas Perplexity’s advertisements had been labelled as sponsored and had no impact on the chatbot’s response, an govt stated that “the problem with advertisements is {that a} consumer would simply begin doubting the whole lot… which is why we don’t see it as a fruitful factor to deal with proper now.”
“We’re within the accuracy enterprise, and the enterprise is giving the reality, the proper solutions,” one other Perplexity govt informed the publication.
With a valuation of round $18 billion, Perplexity reported it earned $200 million in income. Whereas most of its cash comes from subscriptions, it affords free companies as properly.
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In the previous few months, main generative AI companies have been following in Perplexity’s footsteps and have began to point out advertisements in an effort to appease buyers as they ask for extra money and attempt to maintain the operating prices of knowledge centres that energy these massive language fashions.
Whereas OpenAI has began exhibiting advertisements for customers who’re on ChatGPT’s free tier, Google is exhibiting advertisements in AI mode and AI Overviews. Nevertheless, the corporate is but to point out advertisements in Gemini, its in-house AI chatbot.
Like Perplexity, Claude developer Anthropic stated that it’s going to additionally attempt to hold its AI chatbot ad-free.