Perplexity Eyes Smartphone Domination With Comet AI Push
Perplexity AI is one of the fastest growing tech companies in the global economy.
Its LLM chatbot (simply called Perplexity) is widely used, both in casual and professional capacities, with its knack for language, research and problem solving earning it plaudits across the board.
Since receiving upwards of US$500m in its most recent funding round — which drew investors from Accel and other major firms — Perplexity has been valued at US$14bn.
Since its launch in late 2022, Perplexity has widened its reach massively, drawing the custom of two million daily users and 15 million active monthly users, thanks in no small part to its launch of a Chrome extension and an iOS app.
After using the architecture of Google and Apple to seize a sizeable market share, Perplexity is now seeking to supplant the two tech giants in the web browser market.
This week, Perplexity CEO Aravind Srinivas told Reuters that his company is in discussions with several smartphone manufacturers to pre-install its new Comet browser on devices.
It is a calculated attempt to capitalise on what the industry calls browser "stickiness" — the tendency for users to remain with whichever browser comes pre-installed on their devices.
"It's not easy to convince mobile OEMs [original equipment manufacturers] to change the default browser to Comet from Chrome," Aravind explains.
Comet's AI-powered proposition
The stakes in this competition are huge. Google Chrome currently commands around 70% of the mobile browser market, while Apple's Safari and Samsung's browsers together hold another 24%.
Meanwhile, Aravind and his team are determined to topple them all.
Comet is only available in beta for desktop users at the moment, but it holds huge potential.
Built on Chromium architecture, Comet will feel familiar in function to Chrome users, while promising enhanced AI capabilities that could distinguish it from established competitors.
Google has also launched an AI browser feature this year, known simply as ‘AI Mode’, but Perplexity is betting on the superiority of its LLM compared with Google’s Gemini.
Aravind told Reuters that the company aims to reach "tens to hundreds of millions" of users next year following stabilisation of the desktop version in initial tests.
Historical precedent and market resistance
Perplexity's ambitions echo previous attempts to challenge browser monopolies, though the company faces entrenched resistance from the market's existing players.
Earlier this year, Perplexity's Chief Business Officer Dmitry Shevelenko testified in Google's anti-trust case, describing the tech giant's contracts with smartphone makers as "a gun to your head".
Despite the dominance of Google, Perplexity has managed to record some big successes, securing pre-installation of its main app on Motorola devices (though Google Assistant remained the default assistant application).
Bloomberg reported in June that Perplexity is also pursuing partnerships with Samsung Electronics and Apple to integrate its AI search into their devices, potentially as enhancements to voice-activated assistants like Bixby or Siri.
Elsewhere, reports of a takeover have circulated in recent weeks, with Apple emerging as a potential buyer for Perplexity.
Whether Perplexity partners with Apple or is bought outright, it is likely that its AI model will play a huge role in all iPhones going forward, though nothing is concrete just yet.
Financial backing and future prospects
For now, Perplexity’s aggressive expansion plans are going perfectly to plan.
The firm’s investors include Accel, Nvidia, Jeff Bezos and former Google CEO Eric Schmidt, all of whom provide hard capital and strategic expertise.
For Android users, Aravind declined to provide a specific timeline during a recent AMA, stating only that the "team is sprinting".
As has always been the case in Perplexity’s short history, the next few months will likely be conducted at lightning speed, with a Comet app on the horizon.
Ultimately, dominance in the web browser market may be a moonshot. So far, though, Perplexity is making a habit of disproving the odds.
