The future of search is evolving rapidly, and AI-powered search is at the center of this transformation. In this YouTube video, YC General Partner David Lieb sits down with Aravind Srinivas, co-founder and CEO of Perplexity, to discuss his journey in Silicon Valley, the challenges of competing with Google, and the future of search. As the CEO of Perplexity, Aravind has a front-row seat to these changes, and his insights challenge common assumptions about how we will interact with information in the coming years.
When Perplexity was first created, the goal wasn’t to “kill Google.” Instead, the team saw an opportunity to build something ambitious—one that could fundamentally improve how people access and interact with information. Today, Perplexity acts as a more intelligent alternative to Google for specific scenarios, but its vision extends far beyond that.
The current search paradigm is broken. Traditional search engines force users to wade through a cluttered interface of ads, knowledge panels, and various cards – it feels more like fast food than a proper meal. The experience lacks the natural flow of human conversation and often fails to directly address user needs.
The Power of Following User Behavior
The early breakthrough came when they introduced follow-up questions, which doubled engagement time and increased daily questions exponentially. This wasn’t just a feature – it was a signal that users wanted a more conversational, natural way to explore information.
They discovered three critical principles that drive successful consumer products:
- The user is never wrong – if something doesn’t work, it’s the product’s fault, not the user’s
- Reduce friction at every step – from cursor placement to query refinement
- Focus on solving real user problems rather than chasing technical benchmarks
The Challenge of Competing with Giants
Many ask how a startup can compete with Google or Microsoft in search. The answer lies in understanding their constraints. Google faces a fundamental dilemma: their search business is intrinsically tied to their advertising model. Any major change to their search interface risks disrupting their $200 billion annual search revenue.
Microsoft, despite their partnership with OpenAI, has historically struggled with consumer products. Their launch of Bing Chat demonstrated this challenge – having advanced AI capabilities doesn’t automatically translate into a great user experience.
Building the Future of Search
The next generation of search needs to be an intelligent orchestration of multiple components:
- Small specialized models for specific tasks
- Knowledge graphs for structured information
- Interactive widgets for direct actions
- Large language models for complex reasoning
- Smart routing between these different capabilities
The key isn’t just having these components – it’s knowing when to use each one. Sometimes users need a simple answer in milliseconds, like checking the weather. Other times, they need detailed analysis with sources and reasoning. The challenge is making this complexity invisible to users while delivering exactly what they need.
The Monetization Challenge
One of the biggest challenges is balancing user experience with monetization. For example, if someone asks about Jeff Bezos’s watch, should we include a buy button for that exact model? Some users would find this helpful, while others might view it as advertising.
The solution isn’t just about technical capabilities – it’s about building trust with users and finding ways to add value at every step of their journey. The company that figures out how to monetize AI-powered search without compromising user trust will define the next era of information access.
Frequently Asked Questions
Q: How is AI-powered search different from traditional search engines?
AI-powered search provides direct answers and enables natural conversation rather than just returning a list of links. It can understand context, follow-up questions, and provide more nuanced responses based on multiple sources.
Q: Can AI search engines be trusted to provide accurate information?
AI search engines cite their sources and can be more transparent about where information comes from. However, they still require careful development and monitoring to ensure accuracy and prevent misinformation.
Q: Will AI search completely replace traditional search engines?
Rather than complete replacement, we’re likely to see a hybrid approach where AI search complements traditional search methods, with each serving different types of queries and user needs.
Q: How will AI search be monetized?
The industry is still exploring various monetization models that balance user experience with revenue generation. This might include premium features, transaction fees, or new forms of advertising that add value to the user experience.
Q: What role will human oversight play in AI search systems?
Human oversight remains crucial for developing, monitoring, and refining AI search systems. This includes ensuring accuracy, addressing bias, and maintaining high standards for user experience and information quality.
