Perplexity AI is aggressively moving to secure its position in the burgeoning market for AI-powered smartphone assistants. Recent developments indicate a two-pronged strategy: direct integration with smartphone manufacturers and strategic partnerships to preload its assistant on devices.

Strategic Partnerships with Smartphone Giants

Perplexity AI is reportedly in active discussions with Samsung Electronics Co., the world's leading smartphone vendor, to integrate its virtual assistant into Samsung's devices. While the specifics of the deal are still under negotiation, potential terms include offering Perplexity as a default AI assistant option or preloading the Perplexity Android app on Galaxy phones. Samsung could also heavily promote Perplexity within its Galaxy Store.

Adding to its momentum, Perplexity has already solidified a partnership with Motorola (owned by Lenovo Group Ltd.). Expected to be announced this month, the collaboration will see Perplexity preloaded as an alternative assistant on Motorola devices. A tailored user interface will also be created for Motorola’s updated Razr foldable phones, with marketing efforts encouraging users to explore Perplexity's capabilities.

Navigating a Complex Landscape

The pursuit of these deals isn't without its challenges. Samsung maintains a deep partnership with Alphabet Inc., relying on Google's technology for many AI features and its search engine. This pre-existing relationship adds complexity to integrating Perplexity. However, Samsung has been nurturing a relationship with Perplexity for several months. Samsung NEXT, the company's investment arm, invested in Perplexity last year and is considering a further investment that could potentially double the startup's valuation to $18 billion. Perplexity has also reportedly been in talks with investors to raise between $500 million and $1 billion in a new funding round.

Perplexity AI: A Rising Star

Founded in 2022, Perplexity AI has quickly gained traction with its real-time results and search engine-like interface. Its assistant is known for its ability to conduct in-depth research, leveraging its own models and those from OpenAI and Anthropic PBC.

The Motorola deal will see Perplexity preloaded as an alternative to Google’s Gemini. Currently, Motorola offers its own AI system and access to Google Gemini, while Samsung provides its Bixby service alongside Google's AI platform.

Edge Computing and the Future of AI

These strategic partnerships represent a significant step for San Francisco-based Perplexity AI in building its brand and expanding its user base in the US, where ChatGPT and Gemini are more established. While Motorola’s market share in the smartphone industry is smaller, Samsung holds approximately 20% of the global market, according to IDC data.

This move towards integrating AI directly into smartphones mirrors a broader industry trend towards edge computing, where AI inference (the process of generating outputs) is increasingly performed on devices rather than in data centers. Mark Papermaster, AMD's Chief Technology Officer, emphasizes that as inference grows, it's headed for the edge, encompassing devices like phones, laptops, smart traffic lights, and factory sensors. He envisions a future where AI-powered content creation, communication, and autonomous systems are readily available on edge devices, reducing reliance on cloud-based computing.

Papermaster predicts that within three to six years, the majority of AI inference will be done at the edge, driven by the development of innovative applications. He uses the analogy of the App Store, which transformed phones from simple communication devices into powerful platforms with countless applications. As AI models become more efficient and optimized, the shift towards edge computing will accelerate.

The Competitive Landscape

The market for AI assistants is becoming increasingly competitive. While gaining market share is important, the accuracy and capabilities of AI models are constantly evolving. Papermaster notes the importance of both accuracy and efficiency in AI development, pointing to the “DeepSeek moment” where models became more efficient. He suggests that the drive for improvement will continue, with innovations focusing on both increasing accuracy and optimizing performance.

Earlier this year, Perplexity announced a deal with Deutsche Telekom AG in Europe for an AI-centric phone, where it will provide the underlying AI technology, showcasing its commitment to expanding its reach beyond smartphones.