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technology3h ago
Perplexity Abandons AI Advertising Strategy Over Trust Worries
- Perplexity stops AI advertising due to concerns it could erode user trust, distancing itself from sponsored answers.
- The company says it has no plans to revisit AI advertising, aligning with a trust-first stance.
- OpenAI recently moved to show ads to free-tier users, highlighting a contrast with Perplexity’s approach.
- Anthropic argues ads in Claude would clash with its mission of work-focused help and deep thinking.
- Industry-wide trend shows AI advertising as a potential revenue path amid rising model costs, with unclear profitability.
- Perplexity’s stance signals emphasis on trust over quick monetization in AI tools.
- MacRumors notes Perplexity’s ad retreat came after earlier experiments with sponsored answers.
- Google’s AI advertising presence contrasts with the ongoing debate over ads in AI chat interfaces.
- The article highlights rising costs of training large language models as a profitability challenge.
- The piece notes industry perspectives from rivals and the debate over monetization strategies.
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