Perplexity AI is an AI-powered answer engine that provides direct, sourced responses to questions instead of showing a list of links like traditional search engines. It combines real-time web search with AI to deliver accurate answers backed by citations.

Here's what this article covers:

• What Perplexity AI is and how it works

• How to use the Perplexity AI app effectively

• Whether Perplexity is free (and what you get with Pro)

• How it compares to ChatGPT

• Use cases across research, work, and personal learning

• Who owns Perplexity AI and who's behind it

• Key limitations and things to keep in mind

Whether you're considering using it or just want to understand how it fits into the AI landscape, this guide breaks it all down.

About Perplexity AI

Launched in 2022, the platform has quickly gained traction, reportedly reaching an ARR of $20 million and processing 75 million queries in early 2024 thanks to its ability to understand context, summarize information, and surface reliable sources in real time. Its interface feels like a chat, but the responses are grounded in facts pulled from across the web.

At its core, Perplexity aims to bridge the gap between conversational AI and trusted search—making it easier for anyone to get to the "why" and "how" behind a topic without endless clicking or guesswork.

What does Perplexity AI do?

Perplexity AI acts as a hybrid between a search engine, research assistant, and citation generator. Here's what it can do:

• Answer complex questions: Whether you're asking about scientific theories, current events, or obscure trivia, Perplexity breaks down your query and returns a clear, informative response.

• Show its sources: Every answer includes links to the original content it's drawing from, so you can vet the results yourself.

• Summarize information: Instead of scanning multiple pages, Perplexity gives you a concise summary with key details up front.

• Handle follow-up questions: The platform supports contextual dialogue, allowing you to ask clarifying or related questions without starting from scratch.

• Support multimodal search (in some versions): In more advanced versions, Perplexity may incorporate image or code-based input to expand its usefulness beyond text.

In short, it's designed to make high-quality information more accessible, digestible, and transparent—whether you're fact-checking something quickly or diving deep into a complex subject.

Key features of Perplexity AI

Perplexity's design focuses on trust, speed, and usability:

• Real-time search: Answers from live web data, not just pre-trained models

• Built-in citations: Every response includes verifiable source links

• Context awareness: Maintains conversation thread for follow-up questions

• No signup required: Use immediately without creating an account

• Multimodal support: Analyze images and code in advanced versions

• Voice assistant: iOS voice commands for hands-free queries

What is Perplexity AI used for?

Perplexity isn't just another AI chatbot. It's designed to be a versatile, high-trust research tool, and that makes it valuable across different contexts—whether you're writing a term paper, doing competitive analysis, or just trying to settle a group chat debate.

Academic research

Perplexity AI is especially useful for students and researchers who need credible information quickly. Its built-in citation tracking makes it easy to trace facts back to reputable sources like academic journals, news outlets, and databases. Rather than sifting through dozens of papers manually, users can ask a complex question and get a summarized answer with references—cutting hours out of the research process.

Common use cases include:

• Literature reviews

• Sourcing recent studies

• Summarizing dense academic concepts

• Quickly understanding opposing viewpoints

Professional applications

In business settings, Perplexity AI offers serious time-saving potential. Professionals across industries use it to:

• Conduct market research

• Explore industry trends

• Answer technical or legal questions

• Summarize long reports or articles

Because it surfaces answers with source links, it's particularly useful in roles where documentation, accuracy, and verifiability matter—like consulting, legal research, or enterprise support.

Everyday learning and personal knowledge

For casual users, Perplexity serves as a smarter alternative to traditional search engines. Want a quick rundown of quantum mechanics? Curious about the history of a geopolitical conflict? Need to understand the pros and cons of a diet trend? Just ask—and Perplexity will pull together a readable, sourced summary.

It's especially helpful for:

• Lifelong learners exploring new subjects

• Parents helping kids with homework

• Trivia fans and knowledge seekers

• People trying to make informed decisions fast (e.g., "Is oat milk healthier than almond milk?")

How Perplexity AI works

Perplexity AI combines the conversational interface of a chatbot with the data-sourcing power of a search engine. Under the hood, it's powered by advanced natural language processing (NLP), real-time search capabilities, and machine learning algorithms that continuously refine its responses.

Natural language processing and machine learning

At the core of Perplexity is a sophisticated NLP system that interprets your queries the way a human might. It doesn't just look for keywords—it understands intent, phrasing, and context to deliver precise responses.

Source integration and citation tracking

Unlike most AI chatbots, Perplexity is built around transparency. It pulls real-time data from across the web and shows where its answers come from—typically linking to academic papers, news sources, or trusted websites.

Real-time search and updates

Perplexity doesn't rely on a static training dataset. It searches the web live, which means it can respond to current events, newly published research, and trending topics with up-to-date answers.

How the process works (step-by-step)

Here's a quick breakdown of how Perplexity delivers an answer:

1. You enter a question using natural language.

2. Perplexity parses the query using NLP to understand the intent and context.

3. It performs a live web search across trusted sources.

4. Relevant content is analyzed using machine learning to identify the most accurate and concise information.

5. An answer is generated, complete with citations to the original sources.

The entire process takes seconds and delivers fast, verifiable responses.

How do I use Perplexity AI?

Perplexity AI is built to be as intuitive as possible, but using it well takes more than just typing a question. Here's how to get started, write better prompts, and evaluate what you get back.

How to use the Perplexity AI app: Step-by-step guide

Using Perplexity is simple—but with the right approach, you can get even more out of it. Follow these steps to get started and maximize its capabilities.

Step 1: Visit the site or download the app

Go to www.perplexity.ai on your desktop browser, or download the Perplexity AI app from the Apple App Store or Google Play.

Pro tip: The mobile app mirrors the desktop experience, so you can easily switch between devices.

Step 2: Start typing your question

In the search bar, type a clear and specific question. Perplexity supports natural language, so you can phrase it conversationally—just like you would ask a person.

Example:
YES: "What are the economic impacts of climate change in Southeast Asia?"
NO: "Climate change?"

Step 3: Submit your query

Press Enter or tap the send icon. Within seconds, Perplexity will generate an answer, along with citations to its sources.

You'll see links to supporting articles and data, often from academic publications, news outlets, or trusted websites.

Step 4: Explore the sources

Click on the superscript numbers or embedded links to view the original sources. This is especially useful for:

• Verifying facts

• Understanding context

• Digging deeper into the topic

Step 5: Refine with follow-up questions

Perplexity supports threaded follow-ups. You can ask:

• "Can you explain that in simpler terms?"

• "What are some opposing viewpoints?"

• "Who said that?"

It will keep context from your original question to deliver more nuanced responses.

Step 6: Sign up for extra features (optional)

While you can use Perplexity for free, creating an account gives you access to:

• Chat history

• Saved threads

• Personalized results

• Access to Pro features (like advanced models and priority responses)

Tips for writing better queries

Perplexity can handle casual, human-style questions, but a little structure can go a long way. Here's how to write prompts that get better results:

• Be specific: Instead of "What's climate change?", try "What are the main causes of climate change according to recent UN reports?"

• Include timeframes or locations if relevant: "What are the top cybersecurity threats in 2025?" or "What's the job market like in Germany right now?"

• Use follow-up questions to dig deeper—Perplexity keeps context from your previous query.

Example queries:

• "Who are the top competitors of Adobe in 2024?"

• "Summarize the latest WHO report on mental health"

• "How does ChatGPT compare to Perplexity for factual accuracy?"

How to verify sources and interpret results

Perplexity includes citations for nearly every response it gives. You'll typically see numbered superscripts or clickable links that lead to:

• News outlets (e.g. BBC, Reuters)

• Scientific journals (via Semantic Scholar, PubMed, etc.)

• Wikipedia (used cautiously and usually cross-referenced)

Other things to look for when verifying answers from Perplexity:

• Credible domains like .gov, .edu, or known media outlets

• Recently published articles for timely queries

• Multiple sources backing up a single answer (a good sign)

If you're using Perplexity for anything serious—like research or client work—it's a good habit to open those sources and double-check the information.

Perplexity AI pricing and plans

Perplexity offers three tiers for different user needs:

Perplexity Free

• Cost: $0

• Best for: Everyday search and fact-checking

• Includes: Core answer engine with real-time search and citations

Perplexity Pro

• Cost: Monthly subscription

• Best for: Power users and researchers

• Key features:

  • Pro Search with enhanced accuracy

  • Choice of AI models (GPT-4, Claude)

  • Unlimited file uploads (PDFs, code, text)

  • API credits for custom applications

Perplexity Enterprise Pro

• Best for: Businesses and teams

• Includes: All Pro features plus SSO, user management, enhanced security

Perplexity AI vs. ChatGPT

Both Perplexity AI and ChatGPT are advanced tools powered by large language models, but they serve different purposes. Depending on your goals—whether it’s research, content creation, or brainstorming—one may be a better fit than the other.

Key Differences in Function and Focus

Perplexity AI

• Primary Use: Search, fact-finding, and research

• Sources: Always includes citations for every answer

• Real-Time Search: Built-in by default

• Free Version: Includes real-time search and citations

• Interface: Search engine–like, providing concise, sourced answers

ChatGPT

• Primary Use: Conversation, brainstorming, and content creation

• Sources: No citations by default (requires GPT-4 Pro with browsing for sourcing)

• Real-Time Search: Available only with GPT-4 Pro + browsing

• Free Version: Uses GPT-3.5 with limited functionality

• Interface: Chat-based, offering conversational, context-rich responses

Bottom Line

• Research and fact-checking: Choose Perplexity AI

• Content creation and brainstorming: Choose ChatGPT

• Sourced explanations: Choose Perplexity AI

Which One Should You Use?

• Research and fact-checking → Perplexity AI

• Writing assistance and content creation → ChatGPT

• Explaining complex topics with citations → Perplexity AI

• Creative brainstorming or simulated dialogue → ChatGPT

• Summarizing current news or academic sources → Perplexity AI (thanks to live data access)

If you’re using GPT-4 in ChatGPT Pro, the gap between the two tools begins to narrow—especially with browsing enabled. However, Perplexity AI’s built-in citations and streamlined, search-first interface still make it the better choice for fast, trustworthy, and verifiable answers, while ChatGPT remains the go-to for long-form writing, creativity, and conversation.

Who owns Perplexity AI?

Behind Perplexity AI is a fast-growing company that's quickly becoming a key player in the AI landscape. From its founding team to investor backing, there's a lot of momentum—and curiosity—around the organization driving the product forward.

Perplexity AI founder and origin story

Perplexity AI was co-founded in 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski. Their goal was to build a tool that merges conversational AI with real-time, sourced search results—something that neither traditional search engines nor chatbots had nailed at the time.

The founding team brings experience from companies like OpenAI, Meta, and Palantir, which gave them a solid foundation for developing a trustworthy AI product that attracted an investor list running to 46 names by early 2024.

CEO of Perplexity AI

Aravind Srinivas is the current CEO of Perplexity AI. Prior to co-founding the company, he worked as a research scientist at OpenAI and earned a Ph.D. in computer science from UC Berkeley. Under his leadership, the company has quickly gained attention for its commitment to transparency, user trust, and technical excellence.

Perplexity AI stock and funding

As of now, Perplexity AI is a private company, but it's one that's caught the eye of major investors, with a reported 2024 funding round pushing its valuation of between $2.5 billion and $3 billion. The company has raised funding from notable firms like NEA, Elad Gil, and Bessemer Venture Partners, among others.

While there's no Perplexity AI stock available to the public yet, the company's growth and media attention have sparked speculation about a potential IPO down the line. For now, its valuation and financials remain private.

How to stay updated on company news

Want to keep tabs on Perplexity's growth or future investment opportunities? Here are a few ways to stay informed:

• Follow their official blog and X/Twitter account

• Watch for funding announcements on TechCrunch or Crunchbase

• Sign up for newsletters that cover the AI industry

Limitations and things to consider

Perplexity AI is powerful, but like any AI tool, it's not perfect. If you're relying on it for serious research, decision-making, or public content, it's important to understand its boundaries.

Accuracy and reliability

Perplexity is designed to provide fact-based answers with source citations—but that doesn't mean it's immune to errors. Sometimes:

• It might misinterpret a complex question

• Sources may be outdated, biased, or taken out of context

• Summarized responses can oversimplify nuanced topics

Best practice: Always click through to the original sources, especially for anything critical like medical advice, legal details, or financial guidance.

Ethical use and transparency

One of Perplexity's strengths is that it shows where its answers come from. But ethical AI use goes beyond citations. Consider:

• Bias in source material: If the web is biased, so are the results, and the company's methods for sourcing content have led to significant legal challenges, including a case where News Corp filed a lawsuit against the AI search engine.

• User privacy: Always review the platform's data and privacy policies to understand what's collected and how it's used.

• AI hallucinations: Like most generative AI tools, Perplexity can sometimes confidently present incorrect information.

Perplexity mitigates these risks better than many tools, but users should still apply critical thinking—especially when using it in academic, professional, or journalistic work.

Why Perplexity AI is worth your attention

Perplexity AI is more than a smart chatbot—it's a search engine reimagined for the AI era. By combining real-time web search with conversational responses and verifiable sources, it delivers something most tools don't: answers you can actually trust.

Whether you're a researcher chasing citations, a professional navigating complex data, or just someone who wants quick, accurate answers, Perplexity brings clarity to the chaos of information overload.

Its unique blend of transparency, speed, and usability makes it one of the most promising tools in the generative AI space—and a serious contender in how we'll search, learn, and verify information moving forward.

Want to see how Guru brings that same level of trust and transparency to your company's knowledge? Watch our demo to see how Guru's AI search helps teams find reliable answers, right where they work.

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