Perplexity reveals the real reason it’s building a browser—ads

Perplexity's Comet Browser: Built for Ads, Not Just AI

While Google often justifies its data collection for targeted advertising as a way to show users more relevant ads, Perplexity is taking a more direct approach. Perplexity CEO Aravind Srinivas recently revealed on the TBPN podcast that the company's upcoming browser, Comet, is being built primarily to gather user data for serving ads.

Why Perplexity Wants Your Browsing Data

Srinivas stated, "That’s kind of one of the other reasons we wanted to build a browser, is we want to get data even outside the app to better understand you. Because some of the prompts that people do in these AIs is purely work-related. It’s not like that’s personal.” He further explained, “We plan to use all the context to build a better user profile and, maybe you know, through our discover feed we could show some ads there.”

This admission of data collection for advertising purposes is surprisingly candid. While this level of transparency might be refreshing, it raises significant privacy concerns. Collecting browsing data to create detailed user profiles for targeted advertising is a practice many find intrusive.

Following in Google's Footsteps

Perplexity's focus on advertising revenue mirrors Google's business model. Advertising forms a significant portion of Alphabet's (Google's parent company) revenue, exceeding $60 billion in Q1 2025 alone. This demonstrates the potential profitability of advertising, which Perplexity is clearly keen to tap into.

This isn't the only way Perplexity seems to be emulating Google. Similar to Google's integration of its Gemini AI model into Android and its collaboration with Samsung on Galaxy AI features, Perplexity's AI is being integrated into devices like the recently announced Motorola Razr smartphones. This strategic partnership further solidifies Perplexity’s ambition within the mobile AI landscape.

The Browser Battleground

Perplexity isn't alone in recognizing the strategic importance of browsers. Google is currently facing an antitrust lawsuit that could potentially force it to sell off Chrome. Interestingly, OpenAI has expressed interest in acquiring Chrome should this happen. This highlights the increasing value and competitive landscape of the browser market, with major players vying for control.

The Privacy Question and Alternative Revenue Models

Perplexity's strategy contrasts with other AI companies like OpenAI and Anthropic, which are primarily focused on generating revenue through subscriptions to premium AI services. This subscription model, while potentially less intrusive than targeted advertising, often comes with a price barrier for users. Perplexity's advertising-based approach offers free access to its services, but at the cost of user privacy.

Comet's Launch and the Future of AI-Powered Browsing

Perplexity's Comet browser is slated to launch in May. This launch will put Perplexity in direct competition with established browsers like Chrome and Safari, as well as potentially with OpenAI if it acquires Chrome. The success of Comet will depend on how users weigh the trade-off between free access and data privacy. It remains to be seen whether users will embrace a browser explicitly designed for targeted advertising or prefer alternatives that prioritize privacy.

The future of AI-powered browsing is still unfolding. With companies like Perplexity, Google, and OpenAI vying for dominance, the coming months will be crucial in shaping the landscape of how we interact with the internet. The balance between personalized experiences fueled by AI and user privacy will be a key factor in determining which platforms ultimately prevail.

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