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Perplexity Acquires Carbon to Enhance AI Enterprise Search

In a significant move, Perplexity, an AI-powered search platform, has acquired Carbon, a Seattle-based startup specializing in connecting AI systems to external data sources. The acquisition was announced on Wednesday and aims to integrate Carbon’s retrieval-augmented generation (RAG) technology into Perplexity’s answer engine, enabling enterprise-level search capabilities.

Connecting AI to Enterprise Applications

Carbon’s expertise in RAG allows large language models to retrieve relevant information from external databases before generating answers. By integrating this technology, Perplexity plans to launch new enterprise search tools by early 2025. These tools will connect Perplexity’s generative AI capabilities to enterprise platforms like Notion, Google Docs, Slack, and other applications, helping users efficiently search through unstructured data, files, and work messages.

A Key Component of the Acquisition

According to Perplexity’s CEO, Aravind Srinivasan, the goal is to "Make it easier for Perplexity’s answer engine to be informed by diverse sources of information, whether that data resides in internal databases, cloud storage, or document repositories."

This integration will enable businesses to tap into the vast potential of their unstructured data, unlocking new insights and productivity gains.

The Growing Competitive Space

Enterprise AI search is rapidly emerging as a highly competitive sector. OpenAI, Google, and other tech giants are reportedly developing their own enterprise search products to compete with leaders like Glean. Perplexity’s acquisition of Carbon positions it to join this competitive landscape by providing a solution that bridges AI and enterprise workflows.

Building on Past Acquisitions

This marks Perplexity’s second acquisition, following its 2023 acquisition of Spellwise. The Spellwise team contributed to developing Perplexity’s mobile app, showcasing the company’s strategy of acquiring specialized talent and technology to enhance its offerings.

The Significance of This Acquisition

Perplexity’s acquisition of Carbon reflects the growing importance of AI systems that integrate seamlessly with enterprise workflows. By adding RAG technology to its platform, Perplexity is poised to offer tools that help businesses unlock the value of unstructured data.

As the enterprise AI search market heats up, this acquisition signals Perplexity’s intent to remain competitive alongside giants like OpenAI and Google. The addition of Carbon’s technology could enable Perplexity to deliver powerful, enterprise-ready AI solutions that streamline productivity and improve access to critical information.

The Future of Enterprise Search

Perplexity’s integration of RAG technology will likely have a significant impact on the enterprise search market. By enabling users to retrieve relevant information from external databases before generating answers, businesses can tap into the vast potential of their unstructured data, unlocking new insights and productivity gains.

This acquisition is just one example of how AI-powered companies are positioning themselves for success in the rapidly emerging enterprise AI search sector.

The Benefits of This Acquisition

By integrating Carbon’s RAG technology into its answer engine, Perplexity will be able to:

  • Enable users to retrieve relevant information from external databases before generating answers
  • Streamline productivity and improve access to critical information
  • Unlock the value of unstructured data

This acquisition demonstrates Perplexity’s commitment to delivering powerful, enterprise-ready AI solutions that meet the needs of businesses in the rapidly emerging AI search market.

Conclusion

Perplexity’s acquisition of Carbon marks an exciting milestone for the company as it continues to push the boundaries of what is possible with AI-powered search. By integrating RAG technology into its platform, Perplexity is poised to deliver powerful, enterprise-ready AI solutions that unlock the value of unstructured data and improve access to critical information.

As the enterprise AI search market continues to heat up, this acquisition signals Perplexity’s intent to remain competitive alongside giants like OpenAI and Google. With its commitment to delivering innovative, enterprise-level search tools, Perplexity is well-positioned for success in this rapidly emerging sector.