Perplexity AI co-founder and CEO, Aravind Srinivas, recently stepped into a Reddit thread to clear the air about the company’s direction. And its financial health. Responding directly to growing user speculation, Srinivas tackled claims suggesting the company might be under pressure to cut costs or even teetering on financial instability.
One Reddit user had speculated that Perplexity was “doing horribly financially” and cutting corners to stay afloat. As a supposed example, they pointed to Perplexity’s Auto mode. An AI-driven feature that selects the best model to respond to a user’s query without needing manual input. According to the commenter, such automation was a sign of budget tightening.
But Srinivas pushed back hard on that theory. He explained that Auto mode wasn’t introduced to save money—it was built for users. With many AI tools overwhelming users with too many dropdowns and choices, he said Perplexity aimed to simplify things. “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.”
His message was clear: Perplexity is prioritizing usability and seamless design over feature overload.
Srinivas also addressed the elephant in the room—Perplexity’s finances. He reassured the community that the company is on solid footing, with strong revenue growth and no immediate financial worries. “We have all the funding we’ve raised,” he said, “and our revenue is only growing.”
For those wondering about a public offering, the CEO made it known that there’s no rush to take Perplexity public. “We have no plans of IPOing before 2028,” he confirmed.
His statements come as Perplexity continues to gain traction in the growing AI search space. Positioning itself as a lean, user-focused alternative to legacy search engines. The company’s calm and confident tone stands in contrast to the frenzy surrounding many AI startups racing toward profitability or acquisition.
By addressing concerns head-on in a public forum like Reddit, Srinivas not only squashed unfounded rumors but also strengthened the startup’s image as a transparent, user-first company.
