Investment Rating - The report does not explicitly provide an investment rating for the AI search industry Core Insights - The rapid development of AI technology has led to the emergence of AI search products, which utilize natural language processing to generate precise answers, offering a more efficient information retrieval experience compared to traditional search engines [3] - The report aims to analyze the market status, user preferences, and core pain points of AI search products in China for the year 2025 [3] User Research on AI Search Products - "Doubao" has the highest recognition among AI search products, significantly leading in actual usage with an 82.5% mention rate among respondents, compared to ChatGPT and Wenxin Yiyan [6][19] - Despite a high daily usage frequency of 83.92% for AI search products, 76.6% of users still prefer to combine traditional search engines, indicating that AI search is currently viewed as an auxiliary tool rather than a complete replacement [23][28] - Users prefer structured, detailed, and context-rich queries when using AI search, indicating a trend towards more vertical and long-tail search needs [30][32] - Trust in AI-generated content is generally low, with 90% of users verifying AI search answers and 87.4% concerned about the source of information, highlighting the importance of authority and quality in information sourcing [10][39][42] AI Search Product Recommendations - The report highlights several AI search products, including: - **Mita AI Search**: An ad-free search engine focused on professional productivity, offering various search modes and precise content sourcing [46][49] - **Nano AI Search**: Launched by 360, it integrates multiple mainstream models and supports features like PPT and video generation, achieving over 300 million monthly visits [51][54] - **Baidu AI Search**: Combines traditional search capabilities with intelligent search and creative services [10] - **Tencent Yuanbao**: Focuses on conversational search deeply integrated with the WeChat ecosystem [10]

Core Viewpoint - Perplexity is introducing a revenue-sharing model for publishers to address criticisms and legal challenges regarding the use of their content by AI search engines, aiming to create a new compensation standard in the media industry [1][3]. Group 1: Revenue Sharing Model - Publishers will earn revenue when their content is accessed through Perplexity's Comet browser or used by its AI assistant, with funding sourced from the new subscription tier, Comet Plus, which costs users $5 per month [2]. - The revenue split will allocate 80% to publishers and 20% to Perplexity, marking a shift from traditional media revenue models [3]. Group 2: Industry Context and Challenges - The media industry is facing challenges from AI tools like OpenAI's ChatGPT and Google's AI, which have reduced web traffic to publisher sites [1]. - Perplexity has faced legal disputes with media companies like Forbes and Condé Nast over unauthorized content use, and it is currently involved in copyright infringement lawsuits with News Corp [3][4]. Group 3: Company Developments - Perplexity recently raised $100 million at a valuation of $18 billion and has made headlines with a $34.5 billion bid to acquire Google's Chrome browser amid antitrust scrutiny [4]. - The company claims its AI assistant operates differently from web crawlers, as it accesses content based on user requests rather than scraping data [4].

Core Viewpoint - Perplexity has launched a new web browser named Comet, aiming to challenge Google Chrome's dominance in the market, which currently holds a 66.6% market share. The launch coincides with rumors of OpenAI's own browser release, indicating a competitive landscape in AI-driven search and browsing tools [1][2][3]. Group 1: Product Launch and Market Strategy - Comet integrates Perplexity's AI search tools and smart assistant to enhance user experience, initially available to premium users at $200 per month [1]. - Perplexity's ambition extends beyond user acquisition; they aim to replicate and potentially surpass Google's business model [1][2]. - The company has expressed willingness to acquire Google Chrome if legal pressures force Google to divest it, indicating a strategic move to capture a larger market share [1]. Group 2: Data Acquisition and Advertising - CEO Aravind Srinivas highlighted the importance of gathering user behavior data outside of Perplexity's applications to improve advertising quality, framing the browser as part of a broader data strategy [2]. - The decision to create a browser stemmed from a rejection by Google to include Perplexity as a default search engine, prompting the company to develop its own solution [2][3]. Group 3: Competitive Landscape and Industry Commentary - The Comet browser is built on Google's open-source Chromium project, which raises questions about the originality of Perplexity's offering [3]. - The current trend in startups involves forking open-source projects to add paid features, reflecting a broader entrepreneurial strategy in the tech industry [4]. Group 4: Vision and Long-term Goals - Perplexity aims to leverage AI to transform decision-making processes in finance, targeting a market valued at tens of trillions of dollars, significantly larger than Google's annual revenue [8][36]. - The company seeks to disrupt the financial research market dominated by Bloomberg, proposing that AI can enhance decision-making efficiency and democratize access to financial insights [36][37]. Group 5: Product Features and User Experience - Comet is envisioned as a "cognitive operating system" that integrates AI into daily workflows, allowing users to automate tasks and improve productivity [14][15]. - The browser will enable users to issue commands directly, with AI handling tasks such as data extraction and report generation, enhancing the overall user experience [15][34]. Group 6: Funding and Investor Relations - Perplexity's development costs were notably low, with the product being built for just $50,000, which impressed investors like Marc Andreessen [7][28]. - The company has faced skepticism from investors who prefer safer, vertical market strategies, but Srinivas remains committed to tackling larger, more challenging problems [6][26].

Core Viewpoint - The article highlights the launch of the free "Deep Research" feature by Metaso AI Search, which allows users to conduct comprehensive research without the need for applications or memberships, showcasing a new approach to AI-driven research capabilities [1][12][46]. Group 1: Features of Deep Research - The Deep Research function provides a complete research report by connecting various sub-questions and presenting a clear evidence chain [2][22]. - Users can input complex queries, and the system generates a research path in real-time, displaying the AI's thought process [18][19]. - The final report is structured and can be exported in formats like Word and PDF, with sources clearly cited [28][29]. Group 2: Performance and Evaluation - Metaso AI has shown superior performance in evaluation tests compared to other models, including the WebSailor model [8][10]. - The system can visualize data through charts and graphs, making it suitable for business research and everyday inquiries [39][41]. Group 3: Accessibility and Market Position - The Deep Research feature is available for free, contrasting with many competitors that require payment or limited access [48][50]. - This launch is seen as a significant development in the domestic AI search field, providing users with a low-barrier entry to advanced research tools [52].

Core Insights - Perplexity has launched a new web browser named Comet, integrating its AI search tools and smart assistant to provide a more intelligent browsing experience, initially available to premium users at $200 per month [1] - The launch of Comet is a direct challenge to Google Chrome, which holds a market share of 66.6%, and comes at a time when rumors suggest OpenAI is also developing its own AI browser [1][2] - Perplexity aims not only to compete with Google for users but also to replicate and potentially surpass Google's business model [1][2] Company Strategy - The U.S. Department of Justice has pressured Google to sell Chrome and end its default search engine agreements, prompting Perplexity to express interest in acquiring Chrome if such a ruling occurs [2] - CEO Aravind Srinivas has indicated that the development of their own browser is also aimed at gathering user behavior data outside of the Perplexity app to enhance advertising quality [2] - Srinivas has criticized the conventional wisdom in the startup community that suggests focusing on niche markets to avoid competition with giants like Google, asserting that he prefers to tackle significant challenges that attract top engineering talent [4][5] Market Ambitions - Perplexity's ambitions extend beyond search; the company aims to disrupt the financial information market, specifically targeting Bloomberg, by leveraging AI to enhance decision-making processes [6][27] - Srinivas estimates that the daily decision-making value in the financial system is in the tens of trillions of dollars, and even capturing 1% of that could yield $100 billion daily, far exceeding Google's annual revenue of approximately $200 billion [6][27] - The company is positioning itself to transform the financial research landscape by offering a more efficient and user-friendly alternative to traditional tools like Bloomberg Terminal [28] Product Features - Comet is envisioned as a "cognitive operating system" that integrates AI into the browsing experience, allowing users to automate tasks and streamline workflows [9][10] - The browser will enable users to issue commands directly, such as finding specific job candidates or managing tasks, with AI handling the execution [9][10] - Perplexity Labs, a feature of the platform, allows users to conduct in-depth research and generate content, further enhancing the utility of the browser [25][26] Competitive Landscape - The launch of Comet and the focus on AI integration in browsing highlight a growing trend in the tech industry where companies are seeking to redefine user interaction with web tools [1][9] - Perplexity's approach contrasts with traditional models that rely heavily on human analysts, suggesting a shift towards AI-driven solutions in financial decision-making [28] - The company is also addressing concerns about content creators by implementing a publisher program to ensure that quality information sources are compensated fairly, differentiating itself from competitors like Google [30]

Core Viewpoint - Perplexity, a startup focused on AI-driven search engines, is nearing completion of a funding round with a valuation of $14 billion, which is lower than its initial target of $18 billion but represents a significant increase from its previous valuations [1][2]. Group 1: Company Overview - Perplexity was founded in 2022 and has quickly become a prominent startup in reshaping core internet services using generative AI [2]. - The company's valuation surged from $1 billion to $3 billion last year, and then tripled again within months [2]. Group 2: Competitive Landscape - Perplexity faces intense competition in its core search business from major players like Google and OpenAI, which has launched search products for its ChatGPT users [2]. - The company is expanding its offerings beyond paid/free search tools, with plans to launch a browser named Comet, aimed at competing with Google Chrome through enhanced personalization and task orientation [1][2]. Group 3: Financial Performance - Perplexity's annual recurring revenue has reached $120 million, an increase from nearly $100 million reported in March [2]. - Accel is in discussions to lead a $500 million funding round for Perplexity, which is part of a broader effort to raise up to $1 billion at the previously sought $18 billion valuation [1].

Group 1 - The core valuation of AI startup Perplexity has surged to $14 billion during new funding discussions, significantly up from previous rounds but below initial targets [1] - Perplexity, founded in 2022, aims to compete with Google by developing an AI search engine that utilizes natural language processing to transform how users access information [1] - The company's valuation increased from $1 billion to $3 billion last year, and then doubled again within a few months [1] Group 2 - Accel Partners is reportedly negotiating to lead a $500 million investment in Perplexity [1] - The company had initially sought to raise $1 billion at a $18 billion valuation [1]