The video discusses Perplexity, an AI startup that is close to securing a deal with Samsung to integrate its chatbot into phones, highlighting the ongoing competition in AI distribution. The focus is on how the “default chatbot” on devices is becoming a crucial battleground, with companies vying to own the primary interface that users interact with. Perplexity’s efforts to embed its AI into major smartphones suggest a strategic move to gain widespread user access, potentially positioning itself against larger players like Apple and Google.
The conversation emphasizes that these partnerships are more about distribution and market control than immediate revenue. Major tech companies like OpenAI, Google, Meta, and X AI are working on embedding their AI models into their ecosystems, making these integrations key to capturing user data and market share. For example, OpenAI is expected to be integrated into Apple’s Siri, while Google’s Gemini is baked into Pixel devices. These collaborations serve as distribution pipelines, which are increasingly valuable in an era where AI models are becoming commoditized and less differentiated by performance alone.
There is a discussion about the financial implications of these deals. Google pays over $20 billion annually to be the default search engine on Apple and Samsung devices, illustrating the high stakes of owning the “front door” to users. In contrast, Perplexity’s deals, such as with Motorola, seem to focus on user volume rather than immediate revenue, indicating a strategy aimed at gaining market share rather than profit. While these distribution efforts boost visibility, it remains uncertain whether they will translate into significant revenue for Perplexity, especially compared to giants like Google.
Investors appear to remain optimistic about Perplexity despite its modest valuation, which is reportedly about a tenth of OpenAI’s. The company is in talks for a new funding round valuing it at around $14 billion, reflecting the current emphasis on distribution and user base growth over immediate profitability. The video suggests that Perplexity’s valuation may be driven more by potential and strategic positioning than by current traction or revenue, highlighting the competitive and speculative nature of the AI race.
Finally, the video touches on upcoming developments, such as Perplexity’s browser, called “Comet,” which could significantly boost its capabilities and market presence. Unlike chatbots, a browser could serve as a more versatile platform, integrating AI into everyday browsing and search activities. This could be a game-changer for Perplexity, potentially elevating it beyond simple chatbot integration to become a central tool in users’ online experiences. The discussion also notes that while other companies like Google are integrating AI into browsers, the browser remains a vital and exciting frontier in AI development.
