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World of Software > News > What we know about Perplexity and how it compares to ChatGPT
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What we know about Perplexity and how it compares to ChatGPT

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Last updated: 2025/09/01 at 10:37 AM
News Room Published 1 September 2025
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What is Perplexity?

Perplexity is an AI-powered search engine that aims to provide accurate answers to any question.

Running on a large language model (LLM), the tool features real-time web search capabilities to access current internet content.

Its conversational approach also allows users to ask follow-up questions and get more context from their answers.

How does Perplexity work?

When you ask Perplexity a question, it uses advanced AI to search the internet, gather insights from authoritative sources and provide a concise summary.

Using popular LLMs, like GPT-5 and Claude 4.0 Sonet, the AI model aims to understand the context and nuances of your query.

It collects information from news articles, journals and relevant websites and then compiles its findings into an easy-to-understand answer.

By including citations with links to the original sources, it allows you to easily verify the information or explore the topic further.

Who owns Perplexity?

The AI tool is owned and managed by Perplexity AI, a privately held software company.

It was founded in 2022, with the AI search engine being its core product.

As of July 2025, the company was valued at $18 billion.

Major investors in Perplexity AI have included Jeff Bezos, Nvidia and Databricks.

Is Perplexity AI an Indian company?

The firm was founded by a group of four computer scientists, including the current CEO Aravind Srinivas who comes from India.

However, the company is based in San Francisco, California.

The other three co-founders are:

  • Denis Yarats, Chief Technology Officer
  • Johnny Ho, Chief Strategy Officer
  • Andy Konwinski

What can Perplexity do?

In its core, Perplexity can search the internet for you, summarise the results, and produce text with inline citations.

Users can choose between Quick Search for immediate answers and Pro Search for more detailed, in-depth responses.

The Pro version also allows you to choose from different models, such as GPT-5, Claude or Gemini.

What is Perplexity Research?

Perplexity Research is an advanced feature designed to conduct in-depth analysis and generate comprehensive reports on complex topics.

It performs multiple searches, reads a large number of sources, and synthesises the information into a coherent report.

What is Perplexity Labs?

Perplexity Labs could be described as a ‘creation engine’, as it is designed to go beyond providing answers.

Think of it as having a virtual team that can perform extensive research, execute code, create data visualisations and even build simple web applications — all from a single prompt.

What is Perplexity Comet?

Perplexity describes its new Comet Browser as “the AI browser that saves you time”.

Launched on 9 July, the tool allows you to automate tasks, ask questions, research the web and more.

According to the development team, Comet “powers a shift from browsing to thinking”.

The browser has a built-in Perplexity AI assistant that is always available.

You can ask it questions about the page you’re on, summarise articles and compare information across multiple tabs.

When you type a question into the address bar, Comet will give you a summarised, cited answer rather than a list of search results.

You can also highlight text on a page and get instant explanations.

Moreover, you can ask the assistant to perform a multi-step, automated task, such as analysing a product, finding a review, comparing it to competitors and then adding it to a shopping cart.

Can Perplexity generate images?

The capability of generating images is available to all Perplexity users, but levels of access and quality vary depending on the subscription plan.

Perplexity integrates directly with several third-party image generation models, allowing you to create visual content from a text prompt within the same chat.

Instead of using a separate tool, you can simply say: “Generate a realistic image of a Jack Russell Terrier puppy playing in a lavender field.”

1

AI-generated images often look good at first glance, but include little inaccuracies when examined in more detailCredit: Image generated by Perplexity AI

Can Perplexity write code?

Perplexity is designed to be a useful tool for programmers or web developers by integrating real-time search with the ability to generate, explain and debut code.

The AI model can handle a variety of coding tasks across many programming languages including Python and JavaScript.

However, its contextual memory is limited, so it may occasionally lose tack of long-term objectives.

Is Perplexity free to use?

The AI tool comes in three different personal pricing plans, with the basic one available for free forever. It includes:

  • access to voice mode
  • limited access to Perplexity Research
  • limited access to advanced AI models
  • limited file uploads and image generation

How much does Perplexity cost in the UK?

For those who want a bit more, there is a Pro plan for $20 a month or $16.67 when billed annually. This one offers:

  • 10x more citations in answers
  • access to Perplexity Labs
  • unlimited file and photo uploads
  • extended access to image generation and Perplexity Research
  • limited access to video generation
  • one subscription for all the latest AI models, including GPT-5 and Claude Sonnet 4
  • exclusive access to Pro Perks

Advanced users will appreciate Perplexity Max, which comes for $200 a month. It includes everything of the above and more:

  • early access to Comet
  • unlimited access to Perplexity Labs
  • unlimited access to Perplexity Research
  • enhanced access to video generation
  • priority customer support

Is Perplexity better than ChatGPT?

While OpenAI’s chatbot is superior for creative writing, long-form conversations and nuanced dialog, Perplexity excels at tasks that require accurate, up-to-date information.

This makes it ideal for research, academic work or fact-checking.

By providing a list of sources, Perplexity also appears to be more transparent and accountable.

On the other hand, though, ChatGPT stands out in tasks like brainstorming ideas and problem-solving.

While some users may appreciate Perplexity’s direct and straight-forward answers, ChatGPT is better at adjusting to its user and maintaining a human-like conversation.

In the end, it depends on the user’s personal preference and needs, as each AI tool has its strength and weaknesses.

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