Perplexity Abandons AI Ads, Citing Eroding User Trust

The AI startup joins Anthropic in rejecting ads in favor of subscription models.

Published on Feb. 28, 2026

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Perplexity, an AI startup that was one of the first to introduce ads alongside paid subscriptions in 2024, has now abandoned advertising altogether. The company cited fears over eroding user trust, with executives arguing that ads are "misaligned with what the users want" and could cause users to "just start doubting everything." Perplexity's decision comes amid a growing industry debate over the use of ads in AI tools, with OpenAI and Google facing criticism for their plans to introduce ads.

Why it matters

The decision by Perplexity to abandon ads highlights the significant potential for user backlash if other major AI companies follow suit and introduce ads. As the AI industry continues to search for sustainable revenue models, the fear is that ads could trigger a user exodus and further undermine companies' attempts to differentiate themselves in an increasingly crowded market.

The details

Perplexity's main source of revenue is now paid subscriptions, which range from $20 to $200 a month. The company's decision to abandon ads comes after several months of winding them down. Perplexity executives argued that "a user needs to believe this is the best possible answer, to keep using the product and be willing to pay for it," and that the "challenge with ads is that a user would just start doubting everything... which is why we don't see it as a fruitful thing to focus on right now."

  • Perplexity introduced ads alongside paid subscriptions in 2024.
  • Perplexity has now abandoned advertising altogether after several months of winding them down.

The players

Perplexity

An AI startup that was one of the first to introduce ads alongside paid subscriptions in 2024, but has now abandoned advertising altogether.

Anthropic

An AI company that has relied on subscription models and recently aired a Super Bowl ad criticizing OpenAI's decision to introduce ads.

OpenAI

An AI company that has faced criticism for its plans to introduce ads to its ChatGPT tool, which CEO Sam Altman had previously called a "last resort."

Google

Another major AI company that is facing scrutiny for its plans to introduce ads in its AI tools.

Zoë Hitzig

An OpenAI researcher who recently resigned and warned that the company may use ads to manipulate "users in ways we don't have the tools to understand, let alone prevent."

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The takeaway

Perplexity's decision to abandon ads highlights the significant risks AI companies face in introducing ads, as they could erode user trust and trigger a user exodus. This decision aligns Perplexity with Anthropic's subscription-based model, in contrast to OpenAI and Google's plans to incorporate ads, underscoring the industry's growing divide over the best path forward for sustainable revenue.