Perplexity CEO Criticizes Google's Ad-Driven Model, Sparks New AI Browser War

Hans India

7 days ago

Perplexity AI CEO Aravind Srinivas is turning up the heat on tech giant Google as the competition for AI-driven browsers intensifies. In a candid Reddit AMA session, Srinivas did not mince words, calling Google a 'giant bureaucratic organisation' and warning that its deep-rooted reliance on advertising could ultimately hinder its progress in the AI space.
Srinivas emphasized a shifting paradigm in how users will interact with the internet, one where intelligent digital agents take over tasks like searching, browsing, and summarising — a move that, he suggested, clashes directly with Google's click-and-ad-driven revenue model. 'At some point, they need to embrace one path and suffer, in order to come out stronger,' he said.
Despite Google's internal efforts, including its AI browser initiative 'Project Mariner,' Srinivas claims that legacy monetisation strategies continue to stall real innovation. In contrast, Perplexity is advancing boldly with Comet, its new AI-native browser launched on July 9. Currently available by invitation to users on its premium plan — priced at $200 per month or $2,000 annually — Comet is built to serve users, not advertisers. A free version is reportedly in development.
Perplexity recently struck a major partnership in India, where telecom giant Airtel is offering complimentary access to Perplexity Pro for one year to its customers.
The company's core pitch is straightforward: Let AI do the hard work so users can make decisions more efficiently — no more endless tabs and distractions. According to Srinivas, this 'agent-first' approach is what sets them apart from traditional browsers, especially one like Google, which made $198 billion last year from search advertising alone.
Srinivas also pointed to Google's internal structure as a key bottleneck. 'Too many decision makers and disjoint teams,' he said, adding that smaller, focused teams like his can move faster and innovate better.
While Comet is built on Chromium — the open-source browser engine maintained by Google — Perplexity insists its purpose is fundamentally different. The company is laser-focused on user experience, not ad revenue. Srinivas admitted they initially underestimated users' willingness to pay for an ad-free browsing experience. But early demand for Comet's premium tier, he said, proves that 'people are ready to pay for utility and independence.'
Speaking at a Y Combinator event in June, Srinivas acknowledged the likelihood of being copied. 'If your company is something that can make revenue on the scale of hundreds of millions of dollars or potentially billions, you should always assume a model company will copy it.'
He believes Google is already moving in that direction with Project Mariner, though he labeled it 'similar but quite limited.' That, he argued, reflects a reactive, not proactive, approach to innovation.
Perplexity's Head of Communications, Jesse Dwyer, echoed these concerns in a statement to Business Insider, warning that dominant tech firms often try to "drown your voice" when smaller competitors disrupt their space. 'Browser War III,' he said, might lead to negative consequences for consumers if monopolistic tactics win out again.
Despite all the sharp critiques, Srinivas did acknowledge the role Chromium played in making Comet possible. But his message was clear: Perplexity is betting on a future where AI agents work for people — not profit models.
'Enough of the monopoly of Google,' Srinivas concluded.