In the generative AI market, Perplexity, once noted as the "AI search frontrunner," has seen its external growth and presence slow somewhat but is quickly reshaping its revenue structure to focus on substance. It has completely halted advertising and shifted its business model to subscriptions, business-to-business (B2B), and original equipment manufacturers (OEMs), while securing a new growth pillar by penetrating deep into the global device ecosystem through its collaboration with Samsung Electronics.
Perplexity is a generative AI-based search startup founded in the United States in 2022 that grew quickly by promoting an AI search model in which AI generates answers directly and presents sources, instead of listing L.I.N.C like traditional search engines. It drew attention by providing summarized and analyzed answers to natural-language queries.
◇ Amid slowing growth, improving fundamentals… shifting from "traffic → revenue"
According to the industry on the 1st, starting on Feb. 1 Perplexity completely ended its previous model of generating revenue by displaying ads or sponsored content in AI search results and shifted to a Pro/Max subscription model and enterprise- and API-based sales. This moved the company away from an advertising revenue model based on user traffic and changed its business fundamentals to focus on recurring sales (revenue generated regularly).
This change is also evident in user metrics. According to data analytics firm DemandSage, Perplexity's monthly active users (MAU) have leveled off this year at around 30 million to 45 million after rapid growth last year. Its global AI market share is also around 2% to 6%, lagging behind ChatGPT and Gemini. App downloads are also said to have fallen by 60% to 80% since the ad halt.
On the surface, growth indicators suggest a slowdown, but internally a very different kind of expansion is underway. The key is its collaboration with Samsung Electronics. In February, Perplexity signed a strategic partnership with Samsung Electronics and began providing AI features at the system level starting with the Galaxy S26 series. Rather than simply preloading an app, the structure runs core functions deep within the operating system (OS).
On the Galaxy S26, users can invoke Perplexity AI instantly via the "Hey Plex" feature, and it can also be launched directly with the side button. This grants a system-level privilege similar to Samsung's existing voice assistant Bixby or Google Assistant, a rarity for an external AI service.
In particular, Perplexity integrates directly with Samsung Electronics' core applications. If a user asks by voice to tidy up meeting minutes, the Notes app launches automatically, and commands to add a schedule are reflected in the calendar immediately. An agent-style operating system can be implemented in which a single AI controls default apps such as Gallery, Calendar, and Memo in an integrated way.
Bixby has also been enhanced using the Perplexity API. As complex searches, up-to-date information queries, and long-form summarization are now handled by Perplexity, it serves as a core engine within Samsung Electronics' internal AI stack. With Google Gemini also included, a multi-AI agent system has been established on the Galaxy S26.
Expansion into the browser domain is also noteworthy. With the update on the 26th, the Samsung Internet browser added a "Browsing Assist" feature, which also runs on the Perplexity API. It includes capabilities to analyze and compare multiple web pages simultaneously and to automatically find and organize needed information. The feature applies not only to Android but also to Windows PCs, spreading across the broader Samsung ecosystem.
◇ Expanding API sales based on Samsung collaboration… securing a recurring revenue structure
The core of this collaboration is API sales. Every time Perplexity features run on more than 1 billion Samsung smartphones, tablets, and PCs worldwide, an API call occurs, generating ongoing usage fees. The focus is on securing stable recurring sales rather than simply increasing users.
The indirect effects are also significant. With the Perplexity app preinstalled on the Galaxy S26 and the "Hey Plex" invocation feature available, hundreds of millions of users can naturally encounter the service without a separate install. This is likely to lead to higher subscription conversion rates. Perplexity aims to expand its annual recurring revenue (ARR) from about $200 million last year to more than $600 million in 2026.
Expansion beyond smartphones into home appliances is also gaining steam. On the 31st, Samsung Electronics said it applied Bixby based on Perplexity AI to major appliances such as refrigerators, air conditioners, robot vacuums, and washing machines. When users ask questions in everyday conversational form, it provides information or performs device control.
The collaboration between Perplexity and Samsung Electronics aligns with the interests of both sides. By deeply integrating its AI into Samsung Electronics devices, Perplexity can secure global user touchpoints without separate marketing and secure stable sales. Samsung, for its part, can compensate for areas where its in-house AI capabilities are relatively weaker and quickly advance AI features across Bixby, the browser, and core apps. In particular, Samsung Electronics' direction to reduce reliance on Google Gemini and build a multi-AI strategy dovetails with Perplexity's strategy to enter platforms and generate revenue from within.
This goes beyond simple feature integration and is significant in that it marks the full-fledged shift from AI corporations competing directly to acquire users to a strategy of entering manufacturer platforms. Beyond traffic battles among individual services, how deeply AI is integrated into various ecosystems—smartphones, browsers, and operating systems—is likely to emerge as a key competitive edge going forward.