AI ad wars begin as Perplexity snubs ChatGPT advertising
AI search startup shifts focus to enterprise growth while rivals debate ads in chatbots
Perplexity has said it will not introduce ads into its chatbot responses, distancing itself from OpenAI’s new advertising push in ChatGPT. The move comes as OpenAI begins testing ads for US users on its free and $8-a-month ChatGPT Go tier, sparking debate across the generative AI industry.
Perplexity executives confirmed at a recent media roundtable that the company will rely on subscriptions and enterprise revenue instead of advertising.
Perplexity vs ChatGPT
Earlier this month, Anthropic publicly criticised the idea of ads in conversational AI through a series of Super Bowl commercials. In one ad, a chatbot’s fitness advice is interrupted by a promotion for shoe insoles. Another shows a personal question about family communication disrupted by a dating service advert. The campaign appeared to mock OpenAI’s ad-based direction.
Perplexity’s stance now places it closer to Anthropic’s ad-free model. By rejecting ads in chatbot responses, the company signals that it sees long-term value in paid AI services rather than ad-supported growth.
Reportedly, Perplexity is expanding its enterprise sales strategy. The company is targeting finance professionals, CEOs, and doctors, positioning itself as a serious AI search tool for organisations. It currently has five enterprise sales staff and plans to hire more.
Perplexity executives said the company will prioritise revenue and customer retention over engagement metrics such as the number of questions answered. Revenue reportedly grew 4.7 times last year, reaching $200 million in annual recurring revenue by October 2025. While a free tier will remain available, it will include usage limits.
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