Perplexity: Hyper-personalized ads

The X platform is becoming an AI app first, advertising second

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In Today’s Issue:

  • Perplexity: Hyper-personalized ads

  • The X platform is becoming an AI app first, advertising second

Read time: 2 minutes

Perplexity: Hyper-personalized ads

Perplexity, the AI search tool that has posed itself as a serious competitor to Google, is releasing its own search browser, Comet. Aravind Srinivas, CEO of Perplexity, announced that the new browser will quietly track every user’s actions to deliver hyper-personalized ads.

“We want to get data even outside the app to better understand you. What are the things you’re buying? Which hotels? Which restaurants? That tells us so much more.”

Srinivas on the TBPN podcast

Comet is set to launch in May, and its AI assistant is coming preinstalled on new Motorola Razr devices. Perplexity is also in talks with Samsung. The strategy is clear: follow Google’s lead, but skip the subtlety. Google built Chrome and Android to gather user data across devices and dominate the ad market. Now, Perplexity is doing the same, with far fewer filters.

Aravind Srinivas

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The X platform is becoming an AI app first, advertising second

xAI

Elon Musk’s X Corp is slowly moving away from advertising revenue and increasing subscription revenue from its AI service xAI. New financials released as part of a debt sale show that X (formerly Twitter) brought in $91 million in February 2025 from subscriptions and data licensing—a 32% jump from a year Last month, Musk merged xAI (his AI startup) with X under a new holding company, XAI Holdings. The tie-up has become a major selling point for investors: X recently raised nearly $900 million at a $44B valuation—the same Musk paid in 2022. The new cash came alongside a Morgan Stanley-led refinancing deal for high-interest debt still lingering from the acquisition.

The company’s financials now show $1.5B in EBITDA, $1.1B in cash, and expectations to cut $43M a year in interest payments. X is becoming an AI-first, advertising-second platform.

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