Perplexity has launched its own AI-powered browser, Comet, directly challenging Google's Chrome and Search dominance. OpenAI plans to enter the market shortly, escalating competition. Google's Chrome holds over two-thirds of the global browser market, while Google Search dominates with 90% of searches. Such competition poses risks to Google's substantial ad revenue. Perplexity's CEO noted past unsuccessful attempts to partner with Chrome, prompting the creation of its browser. Generative AI's rise may disrupt traditional search traffic, even as Google's ad revenue remains stable amid these developments.
Perplexity's CEO Aravind Srinivas stated, "I reached out to Chrome to offer Perplexity as a default search engine option a long time ago. They refused. Hence we decided to build [the] Perplexity Comet browser."
Chrome commands more than two-thirds of the global browser market, according to StatCounter, and has dominated the market in terms of users for more than a decade.
Google's ad business makes up the bulk of the company's revenue, making the launch of new competitors a serious long-term threat.
The advent of generative AI and the rise of OpenAI's ChatGPT has threatened search traffic, though Google-owner Alphabet's revenue in the advertising and search business increased 8.5% on year last quarter.
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