Perplexity AI, an artificial intelligence startup specializing in AI-assisted search, plans to start running ads on its search app in the fourth quarter. The company has faced controversy over accusations of plagiarizing content from media outlets. Despite this, Perplexity's app has been downloaded over two million times and answers more than 230 million queries monthly, with U.S. queries increasing eightfold in the past year.

In April, Perplexity raised new funding that valued the company at over $1 billion, doubling its valuation from three months earlier. Forbes and Wired reported instances of Perplexity plagiarizing their content. In response, Perplexity updated its Pages feature to better cite sources directly within the generated copy.

Perplexity introduced a revenue-sharing model, allowing publishers to earn money through the search engine. Publishers like Fortune, Time, and Entrepreneur have joined the program. The company aims to have 30 publishers enrolled by the end of the year.

Advertising Model

Perplexity will use a CPM (cost per thousand impressions) model for advertising, with CPM prices exceeding $50. Initial advertising categories include technology, health, pharmaceuticals, arts and entertainment, finance, and food and beverage. Advertisers can sponsor related questions and buy display ads.

According to Perplexity, over 80% of its users have an undergraduate degree, 30% are in senior leadership positions, and 65% are in high-income white-collar professions.

AI-assisted search is seen as a potential risk to Google, as it changes how consumers access information online. Competitors like OpenAI and Google have also introduced AI-driven search features.

A prior version of the story incorrectly stated that Perplexity has 230 million users per month; it actually answers 230 million queries per month.