Perplexity's Retreat From Ads Signals a Bigger Strategic Shift

The AI search startup once predicted advertising would be a massive business. Perplexity is abandoning plans to put ads in its AI search product as the industry looks for sustainable business models that won't hurt user trust. The changes are part of a larger strategic shift for the company, which has long focused on disrupting Google Search's business. Google is changing to be like Perplexity more than Perplexity is trying to take on Google, said a Perplexity executive at a press briefing on Tuesday. Executives spoke to the press on the condition of anonymity.