Perplexity CEO Stands Firm: No Plans to Be Acquired by Big Tech Giants

Aravind Srinivas, the CEO of Perplexity, a rising AI-powered search engine, has stated his intention to keep the company independent despite the increasing acquisition offers from Big Tech giants like Meta and Google. Srinivas expressed this stance during an interview with CNBC’s Deirdre Bosa on her eponymous podcast, emphasizing that Perplexity aims to provide an alternative to Google’s dominant suite of products, including Google Search, Google Assistant, and its AI models. Srinivas highlighted that Google holds a “true monopoly” in the search and AI space, and it is crucial for a new player like Perplexity to challenge this dominance. He believes that the AI market offers unique opportunities where both established tech giants and innovative startups can thrive simultaneously. “AI is the first time there’s an opportunity for a new player to come and disrupt the existing market, and big tech can still keep winning,” Srinivas said. He envisions a scenario where Meta and Apple can enhance their products through AI integration, while Perplexity remains a standalone entity with its own user base and revenue streams. Recent trends in the AI industry have seen tech giants making strategic hires and investments. For example, Google announced the hiring of Windsurf's CEO, Varun Mohan, and key researchers to join the DeepMind team, though Windsurf itself remained independent until its acquisition by Cognition. Similarly, Microsoft hired a team from Inflection AI to bolster its AI capabilities, with Mustafa Suleyman becoming the CEO of Microsoft AI and Karén Simonyan serving as its chief scientist. These moves highlight the value Big Tech places on AI talent and innovation. However, Srinivas is determined to avoid such strategic exits. Instead, his focus is on building Perplexity into a robust and independent player in the AI market. In May, The Wall Street Journal reported that Perplexity was planning to raise $500 million in a new funding round, which could value the company at around $14 billion. This ambitious fundraising goal underscores Perplexity’s commitment to staying independent and competing on its own terms. Bloomberg recently revealed that Apple executives had discussed the possibility of acquiring Perplexity internally. Services chief Eddy Cue praised the company while testifying at the Google antitrust trial in May, saying, “We have been pretty impressed with what Perplexity has done, so we've started some discussions with them about what they're doing.” Despite this interest, Srinivas remains resolute in his decision not to be acquired. Srinivas argues that the success of the AI industry depends on diversity and competition. He sees potential for Perplexity to integrate and operate across various platforms, including those of Big Tech companies. By maintaining independence, Perplexity can continue to innovate and offer users distinct and valuable alternatives to the dominant players in the market. Industry Insights Aravind Srinivas’s decision to keep Perplexity independent aligns with a growing sentiment among AI startups that they can and should stand on their own. While Big Tech companies have the resources to rapidly scale AI initiatives, smaller, more agile startups can bring fresh perspectives and innovations that large companies might overlook. This approach is gaining traction as investors and consumers alike recognize the importance of fostering a competitive and diverse AI landscape. Perplexity, founded in 2020, has quickly become a notable force in the AI field, driven by its cutting-edge search technology and ambitious goals. The company’s stance against being acquired highlights its vision to disrupt the status quo and contribute to the broader AI community as an independent entity.