Perplexity AI Launches Sponsored Follow-up Questions in US

Perplexity AI is expanding its monetization strategy by introducing sponsored follow-up questions generated by its AI. Currently available only in the United States, these advertisements appear alongside answers to user prompts to guide users toward further exploration. Brands including Indeed and Whole Foods have adopted the format, which utilizes a cost per thousand impressions model.

To maintain relationships with content sources, the company shares a portion of its advertising revenue with publisher partners such as Der Spiegel, Fortune, and Time. Ryan Foutty, the company's VP of Business Development, described the revenue-share model as a long-term incentive. Additionally, the company has launched a perks program for Pro subscribers that offers discounts from brands like Oura and Turbotax.

Despite these growth efforts, advertising currently represents less than 0.1% of total revenue. CEO Aravind Srinivas reported that the platform handled 780 million queries in May, though this volume remains well below that of Google's AI Overviews. The company also faces ongoing legal pressure, including copyright infringement lawsuits filed by the New York Post and Dow Jones.