In a move that signals the evolution of AI beyond traditional chatbots, Perplexity has acquired Carbon, a Seattle-based startup specializing in connecting external data sources to large language models (LLMs), highlighting the growing importance of connected AI search solutions. The acquisition, announced on December 18, 2024, reflects an industry-wide push toward integrated enterprise data solutions in AI search.
The Future of Personalized AI Search
While general AI can understand and process information about the world at large, the next frontier lies in AI tools that deeply understand each user's specific context and needs. Carbon's AI technology, which streamlines how LLMs access unstructured data from applications like Google Drive and SharePoint, represents just one approach in this rapidly evolving space.
Industry experts note that different vendors are taking varying approaches to this challenge. While some companies rely on traditional indexing methods, others, like Qatalog, are pioneering innovative solutions such as no-index RAG technology, which offers real-time data processing without the need for duplicating and storing copies of data. This approach can provide more current and accurate results while maintaining data privacy and reducing storage overhead.
Market Evolution
The enterprise search landscape is transforming to address fundamental workplace challenges. Organizations increasingly struggle with knowledge scattered across numerous platforms, employees spending hours searching for information, and teams repeatedly asking the same questions. Rather than making users search through many different web pages, apps, and messages, companies are looking for personalized AI solutions that bring the most critical insights together. The ideal solution would understand each user's context and workflows, whether they're searching through Slack conversations, Notion documents, or SharePoint files.
The strategic importance of enterprise search is evident from recent market movements:
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Perplexity's selective acquisition strategy is notable - Carbon marks only their second purchase following Spellwise in 2023, indicating careful strategic choices rather than aggressive consolidation
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OpenAI is signaling enterprise search as a key priority. In their recent $6.6 billion funding round, they reportedly restricted investors from backing Glean Search. This has reportedly inspired OpenAI, Google, and other AI giants to develop their own enterprise search solutions
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New entrants like Qatalog are innovating with real-time, no-index RAG technology, offering an alternative approach that processes data in real-time without the overhead of traditional indexing methods
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Enterprise customers are increasingly demanding solutions that can unite their fragmented data landscape across tools like Notion, Google Docs, and Slack into a single, intelligent search experience
Each of these developments points to a future where AI-powered search will become more personalized and deeply integrated with users' daily workflows.
Industry Impact
The acquisition addresses critical enterprise needs beyond simple search functionality. "We believe your AI should be personal to you — at home, work, or on the go — and data connectivity is a key part of everyone's daily workflows," Perplexity stated in their announcement. This technology could significantly impact key business processes, from accelerating new employee onboarding to reducing repetitive inquiries and centralizing institutional knowledge.
This sentiment resonates across the industry, with various players taking different approaches to achieve this goal. Perplexity plans to launch features for searching through Notion, Google Docs, Slack and other enterprise applications in early 2025. Meanwhile, solutions like Qatalog are already offering AI search capabilities through connected apps, including Microsoft 365 suite, Google Workspace, Salesforce, BigQuerry, Snowflake, and more.
Community Response and Market Reception
Perplexity's acquisition announcement has sparked significant discussion across the tech industry, with reactions revealing both excitement and measured skepticism. Enterprise leaders have drawn parallels to Microsoft's Copilot while noting Perplexity's potential to offer a more transparent approach to data privacy. Healthcare professionals have been particularly optimistic, seeing this as a potential breakthrough for secure AI adoption in clinical settings. Technical experts have praised the scalability of the solution, while some industry veterans caution about the challenges of operating as an intermediary platform dependent on major tech providers.
The most enthusiastic responses have come from existing Perplexity users, who cite significant productivity gains from the current product and express optimism about these new capabilities. However, questions remain about the technical implementation of secure data access and the long-term competitive dynamics with major tech platforms. Despite these concerns, the prevailing sentiment suggests that this acquisition represents a significant step forward in making AI both more personal and more secure.
Looking Ahead
As the market for connected AI search evolves, companies must evaluate solutions based on both technical capabilities and business requirements. The winning platforms will be those that offer secure enterprise search with rapid implementation and immediate value, all without upfront costs. The Perplexity-Carbon deal signals growing market consolidation, as companies race to provide comprehensive enterprise search solutions that seamlessly integrate with existing data sources.