Perplexity CEO Aravind Srinivas Shuts Down Financial Rumors, Says AI Search Startup Has ‘No Plans Of IPOing Before 2028’

Last week, in a direct response to growing speculation online, Perplexity CEO Aravind Srinivas took to Reddit Inc. RDDT to deny rumors that the AI search company is facing financial trouble or preparing for an imminent IPO.

What Happened: Srinivas addressed user concerns in a Reddit thread where some claimed Perplexity was in financial trouble and making cost-cutting changes, citing the platform’s Auto mode as an example.

Auto mode lets Perplexity choose the best AI model for a prompt rather than allowing users to manually select one.

The CEO pushed back on that narrative, saying the change wasn’t about cutting costs but improving user experience. 

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“All AI products right now are shipping non-stop and adding a ton of buttons and dropdown menus and clutter,” Srinivas wrote. “The user shouldn’t have to learn so much to use a product.”

He also dismissed any concerns of financial instability. “We have all the funding we’ve raised, and our revenue is only growing,” Srinivas stated.

He added, “We have no plans of IPOing before 2028,” making it clear that the company isn’t in a rush to go public.

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Why It Matters: Perplexity is backed by prominent investors such as Amazon.com Inc. AMZN founder Jeff Bezos and Nvidia Corp. NVDA. The AI startup is reportedly in talks to raise up to $1 billion in a new funding round.

This would value the company at $18 billion, doubling its valuation in just four months.

Perplexity has also intensified competition in the AI search market, challenging Alphabet Inc. GOOG GOOGL with new features like answer modes for specific verticals such as travel and shopping.

Previously, Srinivas also expressed confidence in Perplexity’s ability to enhance AI capabilities, even suggesting that the startup could improve Apple Inc.’s AAPL AI offerings amid criticism of Apple’s delayed AI initiatives.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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