SoftBank forges strategic alliance with AI search engine Perplexity
What's the story
SoftBank, the multinational conglomerate, has announced a strategic alliance with Perplexity, an AI search engine aiming to compete with Google.
The partnership aims to expand Perplexity's user base and data touchpoints in SoftBank's home market.
As part of the agreement, SoftBank and two of its mobile operations, Y!mobile and LINEMO, will offer free one-year subscriptions to Perplexity's premium pack, Perplexity Pro, starting June 19.
Business strategy
Revenue generation and international expansion plans
The partnership with SoftBank highlights Perplexity's global ambitions and its focus on generating revenue from its paid tier.
This move also underscores the motivations of firms like mobile carriers, who may not have the resources or desire to build their own AI models and services.
However, with AI buzz at an all-time peak, partnering with AI companies is one way to attract users interested in using more AI.
Strategic alliances
SoftBank's AI focus and Perplexity's other partnerships
SoftBank is not the only one partnering with Perplexity. The start-up also announced a partnership with Germany's Deutsche Telekom in April 2024.
Notably, SoftBank has made AI a significant focus of its ambitions.
The Vision Fund has been exploring potential deals with several AI start-ups including OpenAI and Mistral.
Finances
Funding and valuation growth
Perplexity Pro allows users to select any Large Language Model (LLM) they want to use for their search queries.
In April 2024, the San Francisco-based start-up announced it had closed $62.7 million in funding, doubling its valuation to $1 billion in just three months.
The company is now raising additional capital of at least $250 million at a valuation of between $2.5 billion and $3 billion.
Investors
Perplexity's investor list and service offerings
Perplexity's list of investors includes NEA, Sequoia, NVIDIA, Databricks, Bezos Expeditions, IVP, and several prominent individuals.
Perplexity can be used in web browsers and applications to get answers based on the latest web searches.
The start-up has faced criticism from publishers over how work is credited in answers but says it is working on revenue-sharing deals.
Perplexity Pro, a subscription-based service, offers users access to an advanced version of Perplexity.