Samsung may incorporate Perplexity’s AI tech in its phones

Samsung is nearing an investment in AI search startup Perplexity, potentially pre-installing the app and integrating its search features into Samsung devices and the Bixby assistant, according to Bloomberg. This move aligns with a broader trend of tech companies incorporating Perplexity's AI, as Apple has considered adding it to Safari and Motorola has already partnered with the company. Perplexity is reportedly raising $500 million at a $14 billion valuation.

Analysis

Samsung is reportedly nearing a significant strategic investment in AI search startup Perplexity, a move that includes plans to pre-install Perplexity's application and assistant on its mobile devices and integrate its search technology within Samsung's default browser and potentially its Bixby assistant. This development, which could be announced this year, underscores Samsung's commitment to embedding advanced AI capabilities directly into its hardware ecosystem. Perplexity's concurrent fundraising effort, aiming for $500 million at a $14 billion valuation, highlights the substantial market confidence in its AI-driven search technology. The reported interest from Samsung is not isolated; Apple has also reportedly considered integrating Perplexity into Safari, and Motorola has already announced a partnership, indicating a broader industry trend towards adopting specialized AI search solutions. This positions Perplexity as a key emerging player challenging traditional search paradigms and attracting attention from major technology corporations seeking to enhance their AI offerings. The overall sentiment surrounding this development is strongly positive, reflecting optimism about the potential synergies and innovation.

Key Decisions for Investors

• Investors should monitor for definitive announcements regarding Samsung's investment and integration of Perplexity, as this could materially enhance Samsung's competitive edge in AI-powered devices and potentially drive a re-evaluation of its AI strategy.
• The growing adoption of Perplexity by major device manufacturers signals a potential disruption in the search market; assess the implications for incumbent search providers and consider exposure to innovative AI search technologies.
• Note Perplexity's $14 billion valuation in its current funding round as an indicator of high investor appetite and significant growth expectations within the AI search sector, while also being mindful of valuation metrics in private AI ventures.