Perplexity in talks with phone makers to pre-install Comet AI mobile browser on devices

Nvidia-backed Perplexity AI is in discussions with mobile device manufacturers to pre-install its new Comet AI browser, a strategic move to significantly expand user reach by leveraging browser 'stickiness' and integrating agentic AI capabilities directly into web browsing. This initiative directly challenges Google's dominant Chrome and reflects a broader industry shift towards AI-powered browsers, with Perplexity targeting tens to hundreds of millions of users next year following its $14 billion valuation earlier this year.

Analysis

Perplexity AI, a venture-backed startup with a recent $14 billion valuation and support from investors including Nvidia (NVDA) and Jeff Bezos, is aggressively pursuing a market entry strategy by engaging in discussions with mobile Original Equipment Manufacturers (OEMs) to pre-install its new 'Comet' AI browser. This move constitutes a direct challenge to Google's (GOOGL) entrenched position, which holds approximately 70% of the mobile browser market. The strategy hinges on leveraging the 'stickiness' of default applications to drive user adoption for its agentic AI, which can interact with personal data like emails and calendars to automate tasks. While the CEO acknowledges the difficulty of displacing established players like Chrome, the initiative reflects a broader industry trend towards integrating advanced AI capabilities directly into browsers, a space where OpenAI is also reportedly developing a competitor. The success of these negotiations is a critical variable, but Perplexity's substantial funding provides the necessary capital to pursue this high-risk, high-reward distribution channel.

Key Decisions for Investors

• Investors in Alphabet (GOOGL) should view this as a credible long-term competitive threat to its core browser and search dominance, and should monitor for any announcements of OEM partnerships by Perplexity.
• For investors in Nvidia (NVDA), Perplexity's aggressive growth strategy validates its investment in a key AI application-layer company, representing potential upside as the AI ecosystem matures beyond foundational models.
• The development highlights the browser as a new battleground for AI supremacy; portfolio managers should assess their exposure to incumbents vulnerable to disruption from agentic AI applications and identify potential beneficiaries of this technological shift, such as Apple (AAPL) if it were to partner with Perplexity.