Technology giant Softbank’s Vision Fund 2 is making a strategic investment by funding between $10 million and $20 million for the U.S. based search firm Perplexity AI. It has been an investment with an impressive valuation of $3 billion.
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Perplexity AI
Perplexity AI is a San Francisco-based tech startup focused on bringing change to traditional search with AI. Some of its search tools allow users to find answers to questions with sources and citations included. Launched amid large language models, such as OpenAI or Meta’s Llama open-source model, Perplexity has attracted attention for its unique approach to information retrieval.
Technology Working of Perplexity
Perplexity is an AI-based conversational search engine that delivers short and simple answers to the questions asked by users. Perplexity applies National Language Processing (NLP) to decipher the searches from the users and the surrounding environment. It uses GPT-4, Claude, Mistral Large, and its proprietary models such as Writefull LLMs. These models accept natural language input and provide human-like responses based on information collected from the internet. Specifically, perplexity involves the use of real-time web crawling to quickly deliver answers to the user, helping to fill the gap between human language and machine comprehension. Perplexity AI uses artificial intelligence and real-time information retrieval to improve search features.
Valuation and Industry Impact
SoftBank joined other investors to invest $250 million in Perplexity, which has raised Perplexity’s valuation to a remarkable level. Due to this injection of capital, Perplexity is now among the most valuable in the industry. The purpose of the startup is to become a direct rival to Alphabet Inc.’s Google search and improve people’s experiences and information searching with the help of AI.
Some Investment Considerations for SoftBank
There is an indication that investment by SoftBank in Perplexity AI is strategic. This kind of valuation of $3 billion shows a lot of confidence in Perplexity’s future performance. Vision Fund 2 which is affiliated with SoftBank invests in firms that possess great technology disruption and are market-addressable. Focusing on the search feature is typical for an AI-first company, something that Perplexity indeed is. If successful it could pose a threat to Google and open up some new sources of revenue.
Like any other investment, there are certain risks involved and these are as follows; Future events, competition, and issues related to the actual implementation of the strategy could affect Perplexity. SoftBank’s investment might be a sign of confidence in the future profitability of Perplexity but only time will tell the effect of this investment.
Privacy and Security Maintenance by Perplexity
By using the AI API product of Perplexity, you accept how they handle personal information through their API Privacy Policy regarding collection, use, and disclosure. Some of the information that they gather includes API usage data, which may include the content of a request or the date and time it was made, as well as user account details, including the name and email address. More importantly, it does not use this data to train its models or improve other services. Perplexity stores API usage data and user accounts for one month. Subsequently, the data may be deleted.
One of the freedoms that customers have is the freedom to choose not to have their data retained. Though they use measures to ensure security, every method is only partially perfect. Confusion guards’ data from unauthorized access, modification, or release. They can share it if the law demands it or to protect rights and safety. Personal data is not traded or disclosed to any other recipients; however, necessary service providers may be allowed. Perplexity AI also appreciates user privacy and adopts data ethically, allowing trust and openness.
Conclusion
Although the deal has not been sealed yet, SoftBank’s attention to Perplexity suggests that AI-based search solutions are more relevant than ever before. Thus, the future of Perplexity and other search engineers will continue to develop fascinating novelties in the search industry for the benefit of consumers globally.
