Perplexity CEO Aravind Srinivas has addressed growing speculation around the AI search startup’s financial stability and strategic direction, firmly shutting down rumors about funding issues and plans for a near-term IPO. His comments came in response to a Reddit discussion, where users raised concerns over recent product changes and questioned whether the company was quietly trying to cut costs.
A Redditor claimed that Perplexity might be “doing horribly financially,” pointing to the introduction of Auto mode—a feature that automatically selects the best-performing AI model to respond to user queries—as an example of internal cost-cutting.
But Srinivas was quick to clarify the motivation behind the product update. According to him, the Auto mode wasn’t about trimming expenses, but rather about creating a more seamless and intuitive user experience. “All AI products right now are shipping non-stop and adding a ton of buttons and dropdown menus and clutter,” he wrote. “That’s not sustainable. The user shouldn’t have to learn so much to use a product.”
The Auto mode is designed to reduce friction and complexity, especially for newer users who may find advanced settings overwhelming. By letting the system decide which AI model is most effective for a given prompt, Perplexity is betting on ease-of-use as a competitive edge in the fast-growing AI search engine market.
Revenue Growth and No Urgency to Go Public
Srinivas also took time to dispel speculation that Perplexity is under financial pressure or being forced to make product trade-offs to preserve runway. “We have all the funding we’ve raised, and our revenue is only growing,” he stated confidently. This aligns with Perplexity’s recent momentum, which has included increased adoption, positive press, and expanding use cases in both consumer and enterprise search.
On the topic of going public, the CEO made it clear that an IPO is not on the horizon anytime soon. “We have no plans of IPOing before 2028,” Srinivas confirmed. This long-term stance reflects the company’s strategy to focus on product innovation and growth, rather than rushing toward short-term liquidity or external investor pressure.
Staying Focused in a Crowded AI Race
Perplexity has positioned itself as a next-gen search engine, using AI to provide direct answers instead of a list of web links. The space has become increasingly competitive, with big players like Google, Microsoft, and OpenAI racing to embed AI into search products. In such a heated environment, many startups face pressure to scale fast or burn out. Srinivas’ public response suggests Perplexity is avoiding that fate—for now.
By staying independent, improving user experience, and pacing itself financially, Perplexity appears to be carving out a stable niche. And based on the CEO’s comments, there’s no sign the company plans to change direction any time soon.
