Perplexity, an AI startup, has launched a new $200-per-month subscription plan called Perplexity Max for its power users. The plan gives subscribers unlimited access to the company’s spreadsheet and report generation tool, Labs, as well as early access to new features, including the upcoming AI-powered browser, Comet. Subscribers also receive priority access to services utilizing the latest AI models, including OpenAI o3-pro and Claude Opus 4.
The launch of Perplexity Max marks a trend in the AI industry where providers are rolling out hyper-premium tiers. OpenAI first introduced this model with its $200-a-month ChatGPT Pro plan, and now other companies like Google, Anthropic, and Cursor have followed suit. In addition to the Max plan, Perplexity also offers a $20-per-month Pro plan for consumers and a $40-per-month Enterprise plan. Plans are in place for a similar hyper-premium offering for Enterprise customers in the future.
Despite the strong revenue growth, Perplexity generated $34 million in revenue in 2024, largely from its Pro plan. The startup faces significant financial challenges. It reportedly burned about $65 million in cash, primarily due to heavy investments in cloud servers and the purchase of AI models from OpenAI and Anthropic. However, its annual recurring revenue (ARR) had risen to $80 million by January 2024. To further its growth, Perplexity has been in talks to raise $500 million at a $14 billion valuation, although it’s unclear whether this round has closed.
The competition in the AI search market is becoming fiercer. Google has ramped up efforts with its AI Mode search product, which shares similarities with Perplexity’s offering. OpenAI has also deepened its search capabilities within ChatGPT, further intensifying the competitive landscape.
Perplexity’s strategy to work with multiple AI providers while also competing in the AI search space may be key to its future success. The additional revenue from Perplexity Max could provide the necessary funds to help the startup continue to compete with the giants in the market.
