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Will Perplexity "overshadow" OpenAI?

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I read in today that Perplexity is trying to dominate the Indian market, which could potentially increase the number of users (and thus compete with OpenAI).

Perplexity is trying to attract more users by offering a free 12-month Perplexity Pro subscription – normally worth $200 – to all 360 million Airtel subscribers. (That is the cost for them.)

Do you think is doing it right?

Because the catch is monetisation – the purchasing power of India is simply not the purchasing power of the American market.

What strategy do you think would help them increase not only the number of users but also their profit?

I am attaching the current revenues for both (OpenAI vs Pplxty). 🙈

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I don’t think it will surpass OpenAI.

They’re completely different products with completely different audiences.

But I’m in love with Perplexity Comet. I’ve had access to their new browser for the past 3 days, and it’s an amazing addition. It really saves you a lot of time if you use AI regularly. It’s like having an AI menu always with me. We’re constantly talking.

P.S.

It’s invite-only for now. If you have access to Comet, you get 2 invites per day to share with friends.

If anyone’s interested, feel free to DM me on Twitter to share an invite.

 That's why I am posting it – because I know you love Comet. As soon as I read this news, I recalled you.

   Really love pplx. I dont use any openAI products atm. Gemini, Claude, and PPLX. I think PPLX will be the new google. I dunno what OpenAI is doing TBH, they are slacking. Their agentic coding models are so so. PPLX is way better at AI search. OpenAI really need to step it up. Also mistral just launchd deep search today. So pplx isnt alone with deep search anymore. What a time to be alive 🚀

   Hopefully, they will get more users. I just think that this move is not economically beneficial for them (when I take into account the economic situation and purchasing power in India compared to other countries).

   If you consider that PPLX is something you dont do very often. As appose to coding, which devs just cant get enough of. Both cost 20$ a month. One probably costs 1% in true cost. and the other cost 4000% when hardcore devs use it. Cursor had to raise price overnight 1000% just to cover the extreme case users.

 So it was a trap, huh? And I fell for it that easily? xD

I guess Google will probably release something similar to Comet soon. Rumor has it they’re working on this type of browser too, so I wouldn’t be surprised if it shows up soon.

To me, Perplexity is more of a competitor to Google than to OpenAI. OpenAI is like Apple – everything polished, with a higher-end brand. Perplexity is really cool, but it definitely doesn’t give off that same premium feel.

 You created a great parallel between OpenAI and Apple. I will use it :D (:

   google's RAG is already competing with the retrieval-based LLMs, we're showing client brands being surfaced in days across Perplexity, SGE, and you.com with properly structured and (especially) distributed content.

 Love to get an invite

 send me a message

   I love this community more and more, how you help each other guys. 🫶🥹

   the best community on the web

hard maybe

 My reckon is that it will not be successful (unfortunately).

 because I do not think that the purchasing power of Indian users can equal to purchasing power of e.g. Germany or the US. Only when they really acquire most of them (in terms of convincing them to purchase the product).

Hard to compete right now, OpenAI just released their new browser and has a stronger foundational position. Personally, I’m more curious to see when Google enters the race—they’ve got the most powerful dataset by far.

 It feels like Google is sleeping (tho they have Gemini), it is hard for them to compete with AI because they were first, and I think that Google doesn't promote their AI effort enough.

 I think Google will strike back, but on the enterprise level.

The consumer market is hard to enter right now. But I agree that the level of marketing is quite poor.

Its easy to do that for them actually. India is indeed a price sensitive market. Its also a big advantage for Airtel (the network company they partnered with) that might now get adopted by more startups and corporate offices just for this.

Perplexity will definitely get more exposure, more data.

However, (I am not saying this with any data source) majority of the Indian users don't even need the pro subscription. They are fine with the free chatgpt for most of their tasks. So, this plan might also just flop.

 True true. I really think they should focus on more economically prosperous countries.

This is such a fascinating discussion, thanks for starting it and shoutout to everyone here for sharing real insights! 🙌

I genuinely admire Perplexity’s bold move with Airtel , it feels like a “go broad, then go deep” strategy, and while risky from a monetization angle, it could spark long-term loyalty if executed well. The data advantage alone is massive.

But I do wonder…

Can Perplexity localize features and use cases enough to truly serve Indian creators, students, and professionals?

   What do you mean by localisation? Can you give an example?

   
Great question !
By localization, I don’t just mean language ,though that’s part of it.

I mean things like:

  • Education-focused tools that align with India’s exam culture (UPSC, NEET, GATE, etc.)

  • Regional language interfaces & responses, not just Hindi but Bengali, Tamil, Telugu, Marathi, and beyond

  • Use-case templates for Indian small businesses — from shop owners to content creators to solopreneurs

  • Integration with platforms used heavily in India like Flipkart Seller Hub, Zerodha, or even UPI apps

  • Even cultural tone in answers formal/informal switch, festival-based prompts, context-aware phrasing

We’ve seen platforms like YouTube, ShareChat, and even WhatsApp thrive because they went deep into India’s internet, not just over it.

Would love to see Perplexity explore something like koo

did with multilingual accessibility or even what Byju's tried with regional tutoring.

Done right, it’s not just product-market fit , it’s trust-market fit.

Curious if Perplexity’s team is thinking in this direction 👀

   Maybe you should reach out to them to see whether they count with this. It is an extremely complex thing and only someone who is India-born can handle this precisely :)

   Yeah maybe It's too much complex but i just stated my case study:)

Both are burning cash like crazy but Perplexity won’t be able to make it back. Comet browser is cool but why? We’re moving away from visual interfaces serving html/css on a page. There is no comparison between open ai and perplexity. Perplexity will have to sell in 1-2 years

 Who do you think will acquire it?

Obvious choices: Microsoft, Salesforce Dark horses: NVIDIA, Oracle

But a case can be made that if it is more popular and becomes a household name in India, the talent in India will find use cases of the platform that they could simply implement in other markets.

user numbers does matter a lot at the end of the day.

 You mean that people from India will build stuff via Perplexity and market it beyond India? In such case, there should be a percentage (share revenue system for PPLXTY).

yes, we can look at airtel’s rival jio, how they gave free internet away in india at their launch and literally added to the worldwide internet traffic, which lead to increase in development of all network/digital domains from this new traffic. An addition of a huge users can help perplexity in the their own development and increase their research into other functionality or use cases that they can apply in other parts of the world, although not directly earning from the indian users. Just my 2 cents…

I'll answer from my own perspective. I pay for ChatGPT because I use it every day. I use it for work and for personal tasks. And I think many paid Chat subscribers would agree with me.

Perplexity is a smart search engine, and personally, I don't need to search and analyze information on a daily basis. That's why I don't use the paid subscription for the Pro version. Perhaps if Perplexity had a feature that solved a specific user problem, they would use it every hour, and then they would pay for the Pro version.

I agree with the comment below that these are two different products with different audiences. They solve different problems, so I don't think it's right to compare them in terms of revenue and number of users.

This is classic VC game at play. Get a ton of users by offering things for free, get market share. Perpelxity has played it smartly by trying to get some market share away from OpenAI.

Ultimately, their valuation is decided by how many users they have and not how much revenue they bring. Perplexity will be acquired by Google, Microsoft or OpenAI - and they know that's the only way to make money.

 Ooouu, I haven't been thinking about this way. Smart move then :D

it's early for any of them to make revenue, business model is still not concrete. it's evolving. All they can focus right now is to ensure a high market share, more users. with that perspective it can be a good strategy. ensure your product is used by huge number of people while you figure out the revenue part over the time.

 I would say the opposite – first, find the way to monetise it, then scale in numbers... because when you do not have a plan to monetise but have many users, you will end up on customer support handling people's requests for free :)

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