In a bold move to cater to its most dedicated users, Perplexity has unveiled an upscale subscription plan named Perplexity Max, priced at $200 per month. This premium tier provides users with unrestricted access to Labs, the company's spreadsheet and report generation tool, and grants them early access to innovative features such as Comet, an AI-powered browser set to revolutionize browsing.
Max subscribers are also promised priority access to cutting-edge services that leverage the latest AI models, including those from OpenAI and Anthropic. This announcement positions Perplexity alongside other industry giants like OpenAI, Google, and Anthropic, who have also introduced premium subscription tiers to tap into the demands of their power users.
Expanding its subscription offerings, Perplexity now presents a range of plans to suit different user needs. Alongside the high-end Max plan, there is a consumer Pro plan at $20 per month and an Enterprise Pro plan at $40 per person per month. The company has indicated intentions to extend the hyper-premium Max plan to Enterprise customers in the future.
Financial reports indicate that in 2024, Perplexity's revenue was primarily driven by its $20-a-month Pro plan, amassing approximately $34 million. Despite this, the company experienced significant cash burn, estimated at around $65 million, largely attributed to substantial investments in cloud infrastructure and securing access to AI models. The startup's financials have shown growth, with an ARR of $80 million reported in January. However, to align with its valuation, Perplexity needs to significantly increase its revenue. Talks in May aimed to raise $500 million at a $14 billion valuation, but the status of this funding round remains uncertain.
The competitive landscape for AI search is becoming increasingly fierce, with Google's AI Mode and OpenAI's enhanced search integration in ChatGPT posing significant challenges. Perplexity's strategy to succeed in this arena may hinge on its ability to collaborate with AI providers for models while outperforming them in the AI search market. The additional revenue from Perplexity Max subscribers could provide the necessary boost for the startup to maintain a competitive edge.