The Rise and Fall of AI Giants: Perplexity Under Scrutiny
San Francisco’s Cerebral Valley Summit brought together over 300 AI founders, investors, and industry leaders. The headline of the event? Perplexity, a high-flying AI startup, was voted the company most likely to fail, underscoring a growing wave of skepticism around its practices and sustainability.
Conducted by independent journalist Alex Heath, an anonymous survey at the summit revealed a drastic shift in investor sentiment. Despite Perplexity’s soaring valuation from $14 billion to nearly $50 billion, attendees heavily criticized the startup for its legal troubles and risky strategies. Meanwhile, rival Anthropic emerged as a favorite among investors, highlighting a growing focus on ethical and sustainable AI development.
Why is Perplexity Facing So Many Challenges?
Perplexity’s rapid rise has been mired in controversy. From lawsuits by major players like Amazon and Reddit to copyright infringement claims by renowned outlets like Yomiuri Shimbun and the BBC, skepticism about the company’s practices has only increased. For instance, Perplexity has been accused of heavily scraping content without authorization, ignoring robots.txt protocols meant to prevent such actions. Critics, including Cloudflare CEO Matthew Prince, have even compared its actions to those of North Korean hackers.
Additionally, the company faces concerns over its Comet browser, which was reportedly used to make unauthorized purchases. This cocktail of legal battles and questionable practices has placed Perplexity in a precarious position.
Anthropic: The Investor Favorite
While Perplexity falters, Anthropic has become the rising star of the AI sector. The company’s growth story is impressive: revenue skyrocketed from $87 million in early 2024 to over $5 billion by August 2025. With a robust focus on enterprise AI, Anthropic captured a significant 32% market share, outpacing OpenAI’s 25%.
One of its standout offerings, the Claude Code developer tool, launched in May 2025 and has been a game-changer in B2B applications. Currently generating over $500 million in annual revenue, Anthropic boasts more than 300,000 business customers—a stark contrast to OpenAI’s struggles to monetize its massive user base effectively.
The Future of AI Giants
While OpenAI remains a dominant player, concerns about its staggering financial losses cannot be ignored. With an expected $13 billion in revenue for 2025 accompanied by $9 billion in losses, the company is projected to operate at a deficit until the end of the decade. In comparison, Anthropic expects to break even by 2028, further solidifying its position as a sustainable AI leader.
For businesses and tech enthusiasts looking to stay ahead in the AI race, Anthropic’s enterprise-driven approach offers promising opportunities. The company’s ethical operability, focused growth, and innovative tools like Claude Code make it a strong contender for long-term success.
Final Thoughts
As the AI industry evolves, ethical practices, sustainable growth, and enterprise-focused solutions are taking center stage. Perplexity’s future remains uncertain amidst rising skepticism, while Anthropic’s disciplined growth strategy serves as an example for other AI companies.
For readers interested in exploring cutting-edge AI solutions, consider checking out Claude Code by Anthropic, an innovative tool designed to unlock the potential of businesses with streamlined AI capabilities.
