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Perplexity AI Partners with Motorola to Revolutionize Smartphone Search
Perplexity AI is making a significant move into the smartphone sector through a newly formed partnership with Motorola. This collaboration, announced recently, aims to integrate Perplexity’s advanced artificial intelligence search engine into Motorola’s devices, enhancing the company’s “Moto AI” features.
With this integration, Motorola becomes the first smartphone manufacturer to embed Perplexity’s technology directly within its devices. In addition to this partnership, Motorola is also collaborating with industry giants like Microsoft Copilot, Google’s Gemini, and Meta, enhancing the search capabilities available to users.
During a presentation in New York, Perplexity CEO Aravind Srinivas emphasized the vision behind this technology, stating, “Search shouldn’t be about endless links and ads; it should deliver direct answers to users.” He described the smartphone as a multifaceted tool—an answer machine, personal assistant, and research agent—all in one.
This integration follows a similar initiative involving Apple’s collaboration with OpenAI, where Siri can utilize ChatGPT to answer more complex queries. However, the partnership between Perplexity and Motorola is primarily a distribution agreement, focusing on expanding user access rather than generating immediate revenue. As Srinivas explained to CNBC, this arrangement is mutually beneficial: “We’re looking for usage, and they’re looking to introduce exciting new features.”
Motorola users will be granted a complimentary three-month subscription to Perplexity Pro, which includes the Deep Research feature. This initiative will provide Perplexity with valuable insights into diverse usage patterns beyond its typical audience, helping the company understand how its technology can assist users with both simple and complex tasks.
The partnership emerges in a landscape where various AI-focused devices, such as Humane’s AI Pin and Rabbit r1, have struggled or received lukewarm responses since their launch. Investors are increasingly viewing smartphone-AI collaborations as a pathway to bring innovative technology to consumers in their everyday lives. Some AI startups, including a reported collaboration between Sam Altman and designer Jony Ive, are also exploring similar ventures, aiming to create AI-integrated devices.
Nicole Hagen, Motorola’s head of product marketing, remarked on the significance of this moment in technology, saying, “Fifteen years ago, smartphones changed everything. Now, we are standing at the edge of a major shift, once again, in technology.”
Srinivas highlighted that integrating Perplexity directly into smartphones represents a crucial strategy, as it serves as the primary access point for consumers. He noted that making AI tools integral to daily smartphone use, rather than relying on separate applications, can help users seamlessly incorporate AI into their routines. “Nobody uses AI on the weekends,” he noted, underscoring the need for consistent engagement with AI technology.
Competing with major players like Google and OpenAI, Perplexity has experienced substantial growth, starting 2024 with a valuation of approximately $500 million and soaring to about $9 billion by year-end amid increasing investor interest and the rise of generative AI technology.
Perplexity reportedly generated close to $100 million in annual recurring revenue, demonstrating a robust business model as it aims to carve out a significant niche in the search engine market. The emergence of AI-assisted search poses challenges for established giants like Google, as this innovation changes how consumers seek information online.
Perplexity continues to seek additional funding, with developments indicating potential investments ranging from $500 million to $1 billion at a prospective post-money valuation of $18 billion.
WATCH: Perplexity CEO on AI race: The market of providing answers to questions will become a commodity.
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