> Startup Perplexity, which has a valuation of $1 billion, was founded by a former OpenAI researcher, and has gained traction through providing an AI-native search interface that shows citations in results and images as well as text in its responses. It has 10 million monthly active users, according to a January blog post from the startup.

Who can tell me how and why is Perplexity.ai is worth $1BN? How much revenue are they making vs the amount of money they are burning? What is the justification of this valuation?

Since those 'citations' and 'search results' are all from (guess where) Google Search! So Perplexity's sources are no better than Google. Additionally, I do not know anyone outside of this AI tech bubble that knows about 'Perplexity' and they only have heard of Google, Bing and ChatGPT.

The hype around Perplexity seems to be another co-ordinated VC vehicle for another company to acquire them at an inflated valuation and it looks like it is going to be no-one else but Amazon Inc.

This hype is almost the same as the Clubhouse hype which that company is somehow worth $4BN when it clearly isn't. Given that Google now offers search grounding, enterprise-level generative AI features for GCP customers, Perplexity's valuation obviously looks significantly inflated for the deliberate purpose of someone else acquiring them.

The result is predictable and unsurprising. I predict that Perplexity will just get acquired by a big tech company.