Perplexity Expands AI Search Capabilities with Acquisition of Carbon
On December 19, 2024, the AI search startup Perplexity announced its acquisition of Carbon, a Seattle-based company specializing in retrieval-augmented generation technology. This strategic move aims to enhance Perplexity’s enterprise search and data connectivity capabilities.
Carbon’s technology allows large language models to access information from diverse external data sources, including Google Drive, SharePoint, Notion, and Slack. By integrating this capability, Perplexity intends to bolster its answer engine, promising a more personalized and comprehensive search experience. CEO Aravind Srinivasan noted the goal is to make AI ‘personal to you—at home, work, or on the go.’
Transforming Information Retrieval
The acquisition situates Perplexity to revolutionize how professionals engage with digital information by drawing from internal databases and document repositories. The enhanced search capabilities are set to launch in early 2025.
The move comes at a time when Perplexity is experiencing significant growth, having secured a $500 million funding round, elevating its valuation to $9 billion. This marks a dramatic increase from just $520 million at the year’s onset. With the AI search landscape becoming increasingly competitive, the acquisition of Carbon distinguishes Perplexity among major players like OpenAI, Google, and Microsoft.
A Broader Trend in AI
This acquisition underscores a growing focus within artificial intelligence on offering contextual and personalized search experiences. Perplexity aims to redefine traditional search engines by incorporating intelligent, interconnected approaches in its platform.
As the company continues its trajectory of growth and innovation, the Carbon acquisition is not just a technological upgrade but a strategic positioning for the future of AI-driven information retrieval.
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