Aravind Srinivas: evaluation

Transcript context

…Right, but then that starts to get into details, really, I’d never ask night with the weather because I don’t care. Usually, it’s always going to be about running, and even at night, it’s going to be about running, because I love running at night. Let me zoom out, once again, ask a similar I guess question that we just asked Perplexity. Can you, can Perplexity take on and beat Google or Bing in search? We do not have to beat them, neither do we have to take them on. In fact, I feel the primary difference of Perplexity from other startups that have explicitly laid out that they’re taking on Google is that we never even tried to play Google at their own game. If you’re just trying to take on Google by building another [inaudible 00:15:38] search engine and with some other differentiation, which could be privacy, or no ads, or something like that, it’s not enough. It’s very hard to make a real difference in just making a better [inaudible 00:15:55] search engine than Google, because they have basically nailed this game for like 20 years. The disruption comes from rethinking the whole UI itself. Why do we need links to be occupying the prominent real estate of the search engine UI? Flip that. In fact, when we first rolled out Perplexity, there was a healthy debate about whether we should still show the link as a side panel or something. There might be cases where the answer is not good enough, or the answer hallucinates. People are like, “You still have to show the link so that people can still go and click on them and read.” They said no, and that was like, “Okay, then you’re going to have erroneous answers. Sometimes answer is not even the right UI, I might want to explore.” Sure, that’s okay. You still go to Google and do that. We are betting on something that will improve over time. The models will get better, smarter, cheaper, more efficient. Our index will get fresher, more up to date contents, more detailed snippets, and all of these, the hallucinations will drop exponentially. Of course, there’s still going to be a long tail of hallucinations. You can always find some queries that Perplexity is hallucinating on, but it’ll get harder and harder to find those queries. We made a bet that this technology is going to exponentially improve and get cheaper. We would rather take a more dramatic position, that the best way to actually make a dent in the search space is to not try to do what Google does, but try to do something they don’t want to do. For them to do this for every single query is a lot of money to be spent, because their search volume is so much higher. Let’s maybe talk about the business model of Google. One of the biggest ways they make money is by showing ads as part of the 10 links. Can you maybe explain your understanding of that business model and why that doesn’t work for Perplexity?…

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