Perplexity is keeping its 2028 initial public offering (IPO) timeline intact even as competitors OpenAI and Anthropic move toward Wall Street debuts that could reshape how investors value AI companies. The AI-powered search and answer engine startup is not changing course based on market reception to upcoming offerings from peers, according to company leadership.

Why Is Perplexity Confident About Its IPO Timeline?

Aravind Srinivas, CEO of Perplexity, told CNBC that the company's plans remain unchanged by the performance of OpenAI and Anthropic's upcoming public debuts. "Agnostic of these two companies, we were planning for something in 2028, so that still remains the case," Srinivas stated in an interview that aired on Tuesday. This confidence comes even as the AI industry enters what could be one of the busiest periods of technology listings in years, with Anthropic having confidentially filed for an IPO last week and OpenAI also filing confidentially for a public offering.

Aravind Srinivas, CEO of Perplexity

Srinivas acknowledged that the broader industry will feel the effects if these major debuts stumble. "I certainly think there will be ripple effects if they don't go well, like there is no sugar coating on that," he told CNBC. The performance of OpenAI, Anthropic, and SpaceX's upcoming debut will collectively shape how public markets value the next generation of AI and technology giants.

Srinivas

What Does Perplexity's CEO Think About Current AI Valuations?

Rather than dismissing the lofty valuations attached to OpenAI and Anthropic, Srinivas defended them, arguing that both companies remain at the cutting edge of AI development. However, he suggested that investors will increasingly scrutinize whether leading model developers can maintain rapid improvements in their technology.

Srinivas emphasized that sustained innovation is critical for justifying premium valuations. "If for six months you don't see a model capability advance from one of these two companies, then it's a problem for them," he explained. This comment reflects growing investor skepticism about whether AI companies can deliver continuous breakthroughs to justify their valuations.

Srinivas

How Are Customers Changing Their AI Spending Habits?

The debate over AI valuations comes as companies are taking a harder look at their AI budgets and becoming more selective about which models they use. Customers are increasingly evaluating whether cheaper alternatives can meet their needs, even if they don't match the performance of cutting-edge models.

• Cost-Benefit Analysis: Customers are willing to use open-source models that perform at 90 percent of the capability level if they cost 10 to 20 times less than frontier models
• Market Pressure: This shift is forcing AI companies to justify premium pricing through continuous innovation and measurable performance gains
• Competitive Dynamics: The willingness to adopt cheaper alternatives creates pressure on leading AI developers to maintain their technological edge or risk losing customers

Srinivas captured this dynamic when discussing customer behavior: "If there is an open source model that gets the job done 90 percent of the time, I'd probably use that if it's 10 to 20 times cheaper than the frontier model," he said. This pragmatic approach to AI spending suggests that the market is maturing beyond the early hype phase, where customers are now demanding clear value propositions from expensive AI services.

Srinivas

The timing of Perplexity's 2028 IPO target positions the company to benefit from lessons learned during the OpenAI and Anthropic debuts. By waiting roughly two years, Perplexity can observe how public markets respond to AI company valuations, understand investor priorities, and potentially refine its own business case for going public. Meanwhile, the company continues to operate as a search and answer engine alternative to traditional search engines, competing in a space where AI-powered responses are becoming increasingly central to how users find information online.