Perplexity AI CEO Aravind Srinivas challenged Alphabet Inc.‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Android operating system design on Tuesday, claiming the platform prioritizes advertising revenue over artificial intelligence capabilities.
What Happened: “Android needs to be rebuilt for AI. It’s currently optimized for preserving Google’s ad business rather than a truly agentic OS,” Srinivas wrote on X, targeting the tech giant’s mobile strategy amid intensifying AI competition.
The critique emerges as Google faces mounting pressure across multiple fronts. Apple Inc. (NASDAQ:AAPL) executives have held internal discussions about potentially acquiring Perplexity AI, with M&A head Adrian Perica floating the idea to senior leaders, including services chief Eddy Cue, Bloomberg reported.
Apple shares have declined 17.86% year-to-date. The company is currently facing shareholder lawsuits over exaggerated AI progress claims.
Srinivas’s company has gained significant traction, securing a $14 billion valuation in May, up from $9 billion in November. The San Francisco-based startup, backed by Jeff Bezos and SoftBank Group, positions itself as a direct Google search competitor through AI-powered query responses with inline citations.
Why It Matters: Google’s vulnerability stems from its dependence on ultra-high-margin search advertising, which generates significantly higher profits than YouTube, cloud services, or AI ventures. “This is the first time in two decades that Google is extremely vulnerable,” Srinivas said at the Sohn Investment Conference, describing the company as trapped by its own success.
The Department of Justice has simultaneously proposed forcing Google to divest its AdX advertising exchange and DoubleClick for Publishers ad server, following a federal ruling that found the company maintains an illegal monopoly over online advertising technologies.
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