Recently, Perplexity CEO Aravind Srinivas addressed user concerns on Reddit, reassuring them that the company is not facing significant financial difficulties.

Srinivas’ response appeared to be partly in reaction to a theory proposed by a user suggesting that Perplexity is experiencing severe financial struggles and implementing various cost-cutting measures. The user cited the company’s Auto mode, which enables the AI search engine to automatically select the model for answering user prompts, as an example.

However, Srinivas explained that the introduction of Auto mode was actually a deliberate design choice, driven by the fact that “all AI products are currently being released with numerous features, buttons, and dropdown menus, resulting in clutter.” He emphasized that this approach is “not sustainable” and that the goal is to create a more user-friendly experience.

Srinivas stated, “The user should not have to acquire extensive knowledge to use a product,” highlighting the importance of simplicity and ease of use.

Regarding the speculation about Perplexity’s financial situation and potential IPO plans, Srinivas clarified that the company has sufficient funding from its previous raises and is experiencing revenue growth. Moreover, he confirmed that Perplexity has “no plans to go public before 2028,” dispelling any concerns about imminent financial pressure.