Perplexity Most Likely To Flop? AI Startup Ranks First As 'Most Likely To Fail' At SF AI Summit

Perplexity was once positioned to be one of the most promising startups in the AI space, with some even saying that it could topple Google's popular and highly used Chrome browser. However, that steam fizzled out quite quickly and people are growing sceptical. In a poll conducted at the Cerebral Valley AI Conference in San Francisco, Perplexity AI emerged as the top pick among attendees for the billion-dollar startup most likely to falter.

This survey was conducted among 300 founders and investors. It highlights the growing scepticism around the AI sector over rapid valuations and unproven sustainability. While Perplexity took the first spot, OpenAI came in at a close second place, indicating at techies growing anxiety over the 'AI bubble' theory.

For Perplexity, one of the biggest red flag is the whirlwind fundraising. The valuation surge from $14 billion to $50 billion fueled dfears to the 'AI bubble' akin to the dot com era. Investors at the conference said that they do not feel that Perplexity will unseat Google in the future, and claim that its flashy product launches and free perks are signs of overreach rather than solidifying its base.

Perplexity's spokesman Jesse Dwyer quipped that the gathering felt more like a "judgmental valley conference" than a serious forum. Perplexity recently announced commercial availability of its Comet browser free of cost to gain wider adoption. It even signed a deal with Snapchat to integrate its AI engine beginning early 2026.

In the recent months, Perplexity has also partnered with major telecom companies like Airtel in India and SK Telecom to offer free Perplexity Pro subscriptions to their users.