Perplexity CEO Aravind Srinivas has reassured users that the company is not struggling financially, despite speculation online. Responding to concerns raised on Reddit, he dismissed claims that Perplexity is making drastic cost-cutting changes due to financial difficulties.
Message from Aravind, Cofounder and CEO of Perplexity
byu/aravind_pplx inperplexity_ai
A Reddit user had speculated that Perplexity was “doing horribly financially” and making adjustments to reduce expenses. The user pointed to changes in Perplexity’s Auto mode, which automatically selects the AI model to answer a user’s query, as evidence of cost-cutting efforts.
Srinivas, however, denied this claim and explained that the changes were made to improve user experience. He says AI products are evolving rapidly, often adding unnecessary buttons and menus that can make them more complex. “All AI products are shipping nonstop and adding many buttons, dropdown menus, and clutter. This is not sustainable,” he stated.
He further added, “The user shouldn’t have to learn so much to use a product.” Srinivas maintained that Auto mode was designed to simplify interactions rather than reduce costs.
No plans for an IPO before 2028
In response to questions about Perplexity’s financial situation and potential plans to go public, Srinivas clarified that the company is in a strong position. He confirmed that Perplexity still has the funding it has raised and that revenue continues to grow.
Addressing speculation that the company is under pressure to prepare for an initial public offering (IPO), Srinivas stated, “We have all the funding we’ve raised, and our revenue is only growing.” He further clarified that Perplexity has “no plans of IPOing before 2028.”
Srinivas’ comments come as AI companies face increasing scrutiny over their business models and financial sustainability. While some startups in the industry are struggling to balance revenue and operational costs, Perplexity appears confident in its financial outlook and long-term strategy.
