Shocking Exit: Perplexity's Ad Chief Departs Amid Modest Revenue and Legal Battles

Taz Patel Leaves Perplexity After Nine Months

Taz Patel, the head of advertising and shopping at the AI search startup Perplexity, has left the company after just nine months, as confirmed by Perplexity to ADWEEK. Patel joined in December 2024 with the mission to build out the startup's nascent ads business, bringing experience from his role as chief revenue officer and co-founder of influencer-marketing firm Captiv8, which was acquired by Publicis Groupe earlier this year.

Perplexity has not announced a replacement for Patel, and he has not commented on his departure. Ryan Foutty, Perplexity's VP of business, stated, "It's been great to have Taz on our team, and we wish him all the best in his future endeavors. Perplexity is driven by velocity and curiosity, so our work continues unchanged and we still partner with the world's best marketers and merchants who want to experiment and develop the best consumer experiences for the AI age."

Perplexity's Advertising Ambitions and Challenges

ADWEEK first reported on Perplexity's advertising plans in April last year. Since then, the company has onboarded several brands and agencies, including TurboTax, Indeed, Whole Foods, Universal McCann, and PMG, to test sponsored ads on its U.S. platform.

The search startup's real-time capabilities sync with the host's on-air style, where fact-checks and quick pivots are part of the script.

Perplexity, which raised $100 million in July and is valued at approximately $18 billion, has seen modest success in its ad business. Reports indicate it generated only about $20,000 in Q4 last year. However, the company has expanded into online shopping, allowing users to buy products through PayPal and Venmo directly from search results.

CEO Aravind Srinivas claimed in March that Perplexity had surpassed $100 million in annualized revenue, a 25% increase from January. To fuel growth, the company spent nearly $10 million last year on sales and marketing—about half of its payroll expenses—including a national TV campaign during the 2024 NBA Finals. Additionally, Perplexity incurred almost $5 million in legal fees.

Innovative User Acquisition and Legal Hurdles

Perplexity has experimented with unconventional marketing strategies, such as partnering with video podcasts and streaming shows from figures like Theo Von and Ben Shapiro to provide real-time question answering.

The AI startup would reportedly retain Google as the default search engine on the browser.

Despite these efforts, Perplexity faces significant legal challenges. The New York Times has issued a cease-and-desist letter warning the company to stop using its content, and Japanese publishers Nikkei and Asahi Shimbun have filed a joint lawsuit alleging copyright infringement. In response, Perplexity recently announced plans to share 80% of revenue from its Comet Plus subscription product with publishers, aiming to secure licensing deals and mitigate legal risks.