Perplexity mulls getting into hardware

Perplexity, the AI-powered search engine, wants to get into hardware — kinda sorta.

Aravind Srinivas, Perplexity’s founder and CEO, posted on X yesterday that he was considering making a “simple, under $50” device to “reliably answer” questions “voice to voice.” He promised that Perplexity would “definitely” sell such a device if the post got more than 5,000 likes.

It did. “Alright. LFG!,” Srinivas replied.

Hardware is increasingly becoming a focal point for high-profile AI startups. This growing interest is fueled by both the prestige associated with hardware development and the potential for new AI-driven form factors to enable innovative user experiences. In August, Midjourney, an art generator, assembled a hardware team, and OpenAI's Sam Altman revealed that he's collaborating with former Apple design chief Jony Ive on an AI hardware project. However, despite the allure, hardware development is fraught with challenges.

One of the more notable AI hardware products in recent years, Rabbit's R1, has seen a surge in sales but is now heavily discounted on eBay. While Rabbit claims to have sold around 130,000 units by June, the company has struggled to deliver on promised features, leading to disappointment among early adopters. Other ventures in the AI device space, such as Humane’s ambitious Ai Pin—a wearable device marketed as a smartphone alternative—have faced even more setbacks. Reviews were overwhelmingly negative, sales were disappointing, and safety concerns led to recalls, prompting Humane to explore potential acquisitions.

Perplexity, on the other hand, appears to be in a strong financial position, reportedly close to raising $500 million. This infusion of capital could be a critical factor in developing successful hardware. However, as the experiences of other AI startups have shown, securing financial backing is just one piece of the puzzle. Many factors must align for Perplexity to avoid the pitfalls that have hampered other AI hardware efforts.