Aravind Srinivas, CEO of Perplexity, has addressed reports that the company is struggling financially, insisting that its revenue is growing and there are no immediate plans for an IPO.
Srinivas took to Reddit to refute claims that Perplexity is cutting costs due to financial troubles. A user had suggested the company was in poor shape, pointing to recent changes like the Auto mode, which automatically selects a response model instead of letting users stick to their choice.
The theory was that this was a cost-saving move, with Perplexity allegedly scaling back access to higher-end models.
Perplexity CEO, however, dismissed this idea. He explained that Auto mode wasn’t introduced to cut costs but to improve usability. “All AI products right now are shipping non-stop and adding a ton of buttons and dropdown menus and clutter,” he wrote. “The user shouldn’t have to learn so much to use a product.”
Srinivas acknowledged that rapid updates and new features, including Answer mode, have caused issues. Bugs, usability concerns, and a lack of transparency have frustrated some users. He admitted these problems and apologised, saying the company is working on improving internal processes.
On the financial front, he was clear: “We have all the funding we’ve raised, and our revenue is only growing.” As for a public listing, he made it clear that Perplexity is in no rush. “We have no plans of IPOing before 2028,” he stated.
