Perplexity Views India as a Strategic Advantage in the Competition with OpenAI

Perplexity’s Strategic Expansion into India’s AI Market

While OpenAI dominates the U.S. AI landscape, Perplexity is quietly embarking on an ambitious journey in India. The search-centric AI startup is successfully attracting millions of users in the world’s second-largest internet and smartphone market, gearing up for significant mass-market presence.

Exclusive Partnership with Bharti Airtel

In a significant move this week, Perplexity collaborated with Bharti Airtel, India’s second-largest telecom operator, to provide a complimentary 12-month Perplexity Pro subscription—valued at $200—to all 360 million Airtel subscribers. Airtel confirmed to TechCrunch that this exclusive deal prohibits other telecom providers from offering Perplexity’s services to their customers.

Global Expansion Strategy: Building Volume

The Airtel collaboration marks one of Perplexity’s most noteworthy actions as part of a broader global expansion strategy, which includes alliances with over 25 telecom companies worldwide, such as those recently established with SoftBank in Japan and SK Telecom in South Korea. Given India’s massive population, the startup sees unparalleled opportunities for growth not found in other regions.

Impressive Growth Metrics in India

Perplexity is witnessing remarkable success in India, with downloads skyrocketing 600% year-over-year to 2.8 million in Q2, according to exclusive Sensor Tower data shared with TechCrunch. In comparison, OpenAI’s ChatGPT observed a 587% rise, totaling 46.7 million downloads during the same timeframe.

The uptick in active users mirrors this growth; Perplexity’s monthly active users (MAUs) surged 640% year-over-year in Q2, while ChatGPT’s grew by 350%. India ranked as Perplexity’s largest MAU market last quarter, per Sensor Tower, although ChatGPT still holds a substantial lead with 19.8 million MAUs compared to Perplexity’s 3.7 million.

Comparison of Perplexity and ChatGPT growth in India
Image Credits:Jagmeet Singh / TechCrunch

Leveraging India’s Unique Market Dynamics

Building on prior partnerships, Perplexity aims to utilize India’s substantial user base to leapfrog over mature Western markets where OpenAI currently dominates in paid subscriptions. Earlier this year, it also partnered with Paytm, a leading Indian fintech, to integrate its AI-powered search into the Paytm app, boasting over 500 million downloads and ranking among the top three apps within India’s Unified Payment Interface.

CEO Aravind Srinivas’s Commitment to India

Perplexity’s CEO, Aravind Srinivas, has taken proactive steps to bolster the company’s presence in India. In January, he announced plans to hire an Indian executive, later pausing the initiative due to an “overwhelming” response to the job listing. He has since committed to a $1 million investment and dedicating five hours per week to boost AI initiatives in India.

Targeting Students and Tech-Savvy Users

Sources indicate Perplexity is also considering providing its AI search engine to Indian students to broaden its reach further.

Capitalizing on Limited Local Competition

A key factor for Perplexity’s focus on India is the relatively limited number of local AI startups in the AI search sector, paired with a large base of tech-savvy users. This dynamic has prompted even Google to introduce AI-focused search tools like AI Mode in India ahead of many other regions.

Monetization Challenges and Opportunities

Despite its growth, Perplexity faces significant challenges in monetizing its user base. It still trails far behind ChatGPT globally in revenue generation, despite both platforms offering a comparable $20 monthly subscription. ChatGPT’s in-app purchase revenue reached $773 million in Q2, reflecting a 731% year-over-year increase, while Perplexity reported an increase to $8 million, a 300% growth, as per Sensor Tower data.

Revenue comparison of Perplexity and ChatGPT
Image Credits:Jagmeet Singh / TechCrunch

Future Potential in an Evolving Market

In India, where consumers are known to be price-sensitive, Perplexity’s monetization strategy will require careful consideration. However, promising indicators exist. ChatGPT’s in-app purchase revenue saw an 800% year-over-year increase to $9 million in India during Q2. While Perplexity hasn’t captured notable in-app revenue yet, partnerships like the one with Airtel present opportunities for subscription growth in the short term.

Attracting Investment through User Growth

Strategic alliances in markets like India could position Perplexity favorably in front of investors who prioritize user growth and geographic diversification. To ensure sustained support, the startup must demonstrate the ability to convert its expanding user base into revenue streams.

Srinivas did not respond to requests for comment.

FAQs about Perplexity and Its Strategy in India

  1. What is Perplexity’s main goal in India?

    • Perplexity aims to establish a strong foothold in India’s rapidly growing technology market. By leveraging local talent and resources, the company seeks to innovate and compete effectively against giants like OpenAI.

  2. How does Perplexity plan to compete with OpenAI?

    • Perplexity is focusing on developing unique AI solutions tailored to the needs of the Indian market. This includes enhancing natural language processing capabilities and integrating AI into everyday applications, providing a niche that differentiates it from OpenAI’s offerings.

  3. What advantages does India offer to Perplexity?

    • India provides a vast pool of skilled tech professionals, a burgeoning startup ecosystem, and increasing investment in AI and technology sectors. This environment fosters innovation and collaboration, allowing Perplexity to accelerate its growth.

  4. Are there specific sectors in India where Perplexity will focus its efforts?

    • Yes, Perplexity plans to concentrate on sectors like healthcare, education, and finance, where AI can drive significant improvements and create impactful solutions that align with local needs.
  5. What are the potential challenges Perplexity might face in India?
    • Challenges include intense competition from both local startups and established global players, navigating regulatory landscapes, and adapting to diverse consumer preferences across regions in India.

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Cluely’s ARR Surges to $7M in Just a Week, Founder Roy Lee Warns of Rising Competition.

Cluely’s Revenue Soars to $7 Million in ARR After Launching Innovative Enterprise Product

Cluely’s revenue has skyrocketed to about $7 million in annual recurring revenue (ARR) since launching its new enterprise product a week ago, founder Roy Lee shared with TechCrunch. “Every single person who has a meeting or an interview is testing this out.”

Introducing Cluely: Revolutionizing Communication with AI

Cluely, a standout in Silicon Valley, utilizes artificial intelligence to analyze online conversations. The platform delivers real-time notes, context, and question suggestions, keeping the information discreetly visible only to the user.

Rapid Growth and Profitability: Cluely’s Emergence

Leading up to the product launch, Lee had proudly announced that the company had exceeded $3 million in ARR and was already profitable.

Consumer and Business Interest Surge

Lee noted that both consumers and businesses are showing significant interest in Cluely’s offerings.

A Controversial Beginning: From Suspended Student to Startup Success

Cluely’s origin is rooted in controversy; Lee claimed on X that he was suspended from Columbia University for creating a tool intended to cheat in job interviews for software engineers. This incident fueled the startup’s launch, embracing the cheeky tagline of “cheat on everything.”

From Controversy to Credibility: Backed by Major VCs

With backing from notable investors such as Andreessen Horowitz, Abstract Ventures, and Susa Ventures, the messaging has shifted to “Everything You Need. Before You Ask. … This feels like cheating.”

Cluely’s Growing Reputation in Silicon Valley

Despite its controversial background, businesses continue to engage with Cluely, with Lee revealing that a public company recently doubled its annual contract to $2.5 million.

Expanded Features for Enterprise Users

The enterprise version of Cluely’s product resembles the consumer application but includes added features like team management and enhanced security settings. Key business applications include sales calls, customer support, and remote tutoring.

Real-Time Note-Taking: A Game Changer for Users

Lee highlights that Cluely’s real-time note-taking capability is particularly appealing to customers. “Meeting notes have proven to be a crucial use case for AI. The challenge with competitors is that they only provide post-call summaries,” he remarked. “With our service, you can refer to notes during the meeting.”

Facing Competition: The Rise of Free Alternatives

However, Cluely’s real-time notetaker might face stiff competition. Recently, Pickle—a company branding itself as a digital clone factory—claimed to have developed Glass, an open-source tool with similar features to Cluely. Garnering over 850 stars and nearly 150 forks within hours on X, the developer community’s response indicates a significant interest in this free alternative.

Looking Ahead: Can Cluely Sustain Its Success Amid Competition?

As competition from free products like Glass emerges, the future of Cluely’s remarkable ascent remains to be seen.

Sure! Here are five FAQs based on the announcement regarding Cluely’s ARR:

FAQ 1: What does it mean that Cluely’s ARR doubled to $7M?

Answer: ARR stands for Annual Recurring Revenue, which is a metric used to assess the revenue generated from subscriptions or long-term contracts on an annual basis. Cluely’s ARR doubling indicates significant growth in its subscription-based revenue, reaching $7 million within one week.

FAQ 2: Who is Roy Lee, and what role does he play at Cluely?

Answer: Roy Lee is the founder of Cluely. As the founder, he plays a crucial role in the company’s strategic direction, growth initiatives, and overall leadership, overseeing operations and ensuring the business meets its objectives.

FAQ 3: What factors contributed to the rapid growth in Cluely’s ARR?

Answer: While specific details were not provided, factors could include increased customer acquisition, successful marketing strategies, launching new products or features, or enhanced customer retention efforts. These elements often drive substantial growth in subscription-based business models.

FAQ 4: What does Roy Lee mean by "rivals are coming"?

Answer: Roy Lee’s mention of "rivals are coming" suggests that the competitive landscape is evolving, with potential competitors looking to enter the market or existing competitors likely to improve their offerings. This indicates a need for Cluely to maintain its competitive edge to sustain its growth.

FAQ 5: How might Cluely respond to the competitive pressure from rivals?

Answer: Cluely might respond to competitive pressure through various strategies, such as innovating its product features, enhancing customer service, adjusting pricing strategies, or increasing marketing efforts to strengthen brand loyalty. The company may also focus on market research to understand competitors better and identify areas for differentiation.

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Google Image 3 Outshines the Competition with Cutting-Edge Text-to-Image Models

Redefining Visual Creation: The Impact of AI on Image Generation

Artificial Intelligence (AI) has revolutionized visual creation by making it possible to generate high-quality images from simple text descriptions. Industries like advertising, entertainment, art, and design are already leveraging text-to-image models to unlock new creative avenues. As technology advances, the scope for content creation expands, facilitating faster and more imaginative processes.

Exploring the Power of Generative AI

By harnessing generative AI and deep learning, text-to-image models have bridged the gap between language and vision. A significant breakthrough was seen in 2021 with OpenAI’s DALL-E, paving the way for innovative models like MidJourney and Stable Diffusion. These models have enhanced image quality, processing speed, and prompt interpretation, reshaping content creation in various sectors.

Introducing Google Imagen 3: A Game-Changer in Visual AI

Google Imagen 3 has set a new standard for text-to-image models, boasting exceptional image quality, prompt accuracy, and advanced features like inpainting and outpainting. With its transformer-based architecture and access to Google’s robust computing resources, Imagen 3 delivers impressive visuals based on simple text prompts, positioning it as a frontrunner in generative AI.

Battle of the Titans: Comparing Imagen 3 with Industry Leaders

In a fast-evolving landscape, Google Imagen 3 competes with formidable rivals like OpenAI’s DALL-E 3, MidJourney, and Stable Diffusion XL 1.0, each offering unique strengths. While DALL-E 3 excels in creativity, MidJourney emphasizes artistic expression, and Stable Diffusion prioritizes technical precision, Imagen 3 strikes a balance between image quality, prompt adherence, and efficiency.

Setting the Benchmark: Imagen 3 vs. the Competition

When it comes to image quality, prompt adherence, and compute efficiency, Google Imagen 3 outshines its competitors. While Stable Diffusion XL 1.0 leads in realism and accessibility, Imagen 3’s ability to handle complex prompts and produce visually appealing images swiftly highlights its supremacy in AI-driven content creation.

A Game-Changer in Visual AI Technology

In conclusion, Google Imagen 3 emerges as a trailblazer in text-to-image models, offering unparalleled image quality, prompt accuracy, and innovative features. As AI continues to evolve, models like Imagen 3 will revolutionize industries and creative fields, shaping a future where the possibilities of visual creation are limitless.

  1. What sets Google Imagen 3 apart from other text-to-image models on the market?
    Google Imagen 3 is a new benchmark in text-to-image models due to its enhanced performance and superior accuracy in generating visual content based on text inputs.

  2. How does Google Imagen 3 compare to existing text-to-image models in terms of image quality?
    Google Imagen 3 surpasses the competition by producing images with higher resolution, more realistic details, and better coherence between text descriptions and visual outputs.

  3. Can Google Imagen 3 handle a wide range of text inputs to generate diverse images?
    Yes, Google Imagen 3 has been designed to process various types of text inputs, including descriptions, captions, and prompts, to create a diverse range of visually appealing images.

  4. Is Google Imagen 3 suitable for both professional and personal use?
    Absolutely, Google Imagen 3’s advanced capabilities make it an ideal choice for professionals in design, marketing, and content creation, as well as individuals seeking high-quality visual content for personal projects or social media.

  5. How does Google Imagen 3 perform in terms of speed and efficiency compared to other text-to-image models?
    Google Imagen 3 is known for its fast processing speed and efficient workflow, allowing users to generate high-quality images quickly and seamlessly, making it a top choice for time-sensitive projects and high-volume content creation.

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Google’s AI Search Faces Tough Competition and Hurdles Amid Potential Charging Plans

With the online search market landscape evolving rapidly, Google is facing increasing competition from AI-powered search engines and chatbots such as OpenAI’s ChatGPT and Perplexity AI. These emerging platforms bring advanced natural language processing (NLP) and machine learning technologies to the table, challenging Google’s long-standing dominance. To adapt and innovate in this changing landscape, Google is reportedly considering the introduction of premium AI search features.

Google is exploring the integration of advanced AI capabilities into its existing subscription services, like Google One and Workspace, to offer users more powerful and personalized search tools. While the specifics of these premium features are still unknown, the idea is to provide basic search functionality for free to all users while offering more advanced AI-powered features to paying customers.

Monetizing these premium AI search features poses a challenge for Google, as it must strike a balance between enhancing user experience and maintaining profitability. The company traditionally relies on advertising revenue, which could be impacted by AI-powered search features that provide direct answers to user queries within search results, reducing the need to click on ads.

In response to the changing landscape, Google has been experimenting with AI-generated summaries alongside traditional search results to enhance user experience. These experiments aim to optimize AI search capabilities while analyzing user feedback to improve the search experience. As Google navigates the complexities of monetization and user experience, it must find a delicate balance to ensure sustainability.

With competitors like OpenAI’s ChatGPT and Perplexity AI gaining traction, Google must stay ahead of the curve by leveraging its resources, expertise, and user base to differentiate itself in the AI search arena. The success of Google’s AI search initiatives will hinge on its ability to innovate while addressing user expectations and business imperatives.

The potential introduction of premium AI search features signifies a shift in Google’s business model towards a more diversified, subscription-based approach. However, transitioning to a premium AI search model requires Google to carefully balance user expectations and technological complexities while maintaining accessibility and affordability. The future of search will be shaped by AI advancements, user preferences, and business imperatives, with companies needing to continually innovate and adapt to stay relevant in the age of AI.

As Google embarks on this new chapter in its search journey, it must draw on its talent, resources, and innovation to maintain its leadership position and shape the future of search in the AI era.





Google Faces Significant Challenges and Competition as It Considers Charging for AI Search

FAQs About Google Considering Charging for AI Search

1. What challenges is Google facing in the AI search market?

Google is facing significant challenges from competitors who are also investing heavily in AI technology. This includes companies like Microsoft, Amazon, and IBM, who are all vying for a larger share of the AI search market.

2. Why is Google considering charging for AI search?

Google is considering charging for AI search in order to monetize its technology and generate additional revenue. As more companies invest in AI and the technology becomes more widespread, Google sees an opportunity to capitalize on its expertise in this area.

3. How will charging for AI search impact Google’s users?

Charging for AI search could potentially impact Google’s users by limiting access to certain features or services that were previously available for free. It could also lead to changes in the way search results are displayed or prioritized based on paid partnerships with businesses.

4. What sets Google apart from its competitors in the AI search market?

  • Google’s extensive data and user base give it a competitive advantage in developing AI algorithms and improving search results.
  • Google’s reputation as a leader in AI research and development attracts top talent and resources to continue innovating in this space.
  • Google’s integration with other products and services, such as Google Assistant and Google Maps, creates a seamless user experience across platforms.

5. How can businesses prepare for potential changes in Google’s AI search pricing?

  • Monitor announcements and updates from Google regarding changes to their pricing models for AI search.
  • Diversify search engine optimization (SEO) strategies to include other search engines and platforms in case Google’s pricing becomes prohibitive.
  • Consider investing in alternative AI search technologies or partnerships with other companies to ensure access to advanced search capabilities.


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