Perplexity CEO Admits Browser Will Track Users for Personalized Ads

Perplexity's Ambitions: Beyond Search

Perplexity is not simply aiming to rival Google; its aspirations extend to emulating Google's comprehensive approach to the digital landscape.

Data Collection and Targeted Advertising

Aravind Srinivas, CEO of Perplexity, revealed on the TBPN podcast that the development of their own browser is strategically linked to gathering user data extending beyond the confines of their application.

This data acquisition is intended to facilitate the sale of premium advertisements, leveraging a deeper understanding of user behavior.

Understanding User Intent

Srinivas explained that analyzing user prompts within the AI reveals a significant portion are work-related, offering limited insight into personal preferences.

Consequently, a broader data set is needed to construct a more complete user profile.

The Value of Lifestyle Data

Information regarding purchasing habits, travel destinations, dining choices, and browsing activity provides considerably more valuable insights into individual interests.

Srinivas anticipates that users will accept this level of tracking, given the potential for receiving more pertinent and relevant advertisements.

Comet Browser and Future Plans

Perplexity intends to utilize the collected data to refine user profiles and integrate advertisements into its discover feed.

Despite initial challenges, the Comet browser is projected to launch in May, according to Srinivas.

Following Google's Footsteps

The strategy mirrors Google’s own success, where extensive user tracking contributed to its current market capitalization of approximately $2 trillion.

This is the rationale behind Google’s development of both a browser and a mobile operating system.

Expansion into Mobile

Perplexity is also making inroads into the mobile sector, having established a partnership with Motorola.

The Perplexity app will be pre-installed on the Razr series and accessible through Moto AI via the command “Ask Perplexity.”

Potential Samsung Partnership

Discussions with Samsung are reportedly underway, as indicated by a Bloomberg report referenced by Srinivas during the podcast.

Industry-Wide Data Collection Practices

Google is not alone in employing user tracking for advertising purposes.

Meta utilizes its Pixel technology, embedded on numerous websites, to gather data even from individuals without Facebook or Instagram accounts.

Even Apple, despite its privacy-focused marketing, engages in user location tracking to support advertising within certain applications.

Growing Distrust of Big Tech

These practices have fueled growing distrust of large technology companies across the political spectrum in both the U.S. and Europe.

The Irony of Transparency

The candidness with which Srinivas articulated Perplexity’s browser-tracking and ad-selling plans is particularly noteworthy.

Google's Antitrust Battle

Google is currently defending itself against the U.S. Department of Justice, which alleges monopolistic behavior in search and online advertising.

The DOJ is seeking a court order to compel Google to divest Chrome.

Potential Acquisition of Chrome

Both OpenAI and Perplexity have expressed interest in acquiring the Chrome browser business should Google be forced to sell it, unsurprisingly given Srinivas’ stated rationale.