DEV Community

Cover image for I Researched about the “Research Tool” that's rewriting the Rules: Perplexity AI
Dharma Teja
Dharma Teja

Posted on

I Researched about the “Research Tool” that's rewriting the Rules: Perplexity AI

When I first started poking around Perplexity AI’s documentation and blog, what struck me was not just the polished UI or the witty brand voice - but the sheer precision of its engineering. As a developer, you already know the theoretical distinctions between search engines, chatbots, and answer engines. What few get to see is the code-level choreography that makes real-time, sourced answers possible.

In this blog, I’ll walk you through:

  1. Core Architecture & Technologies
  2. Citation & Reasoning Pipeline
  3. Model Orchestration & Agents
  4. Scalable Infrastructure & Data Flow
  5. Complete Founder Story & Growth Metrics

comparison of ai tools

Along the way, I’ll sprinkle in code snippets illustrating how Perplexity’s dev team likely tackled key challenges. Buckle up-it’s going to get technical.


1. Core Architecture & Technologies

At its heart, Perplexity combines three pillars:

  • Live Web Scraping & Retrieval
  • Large Language Model Synthesis
  • Citation Extraction & Formatting

1.1 Live Retrieval Module

Perplexity employs a two-stage retrieval:

First, a fast keyword filter (using Elasticsearch or Vespa) narrows documents;

Then a lightweight Transformer-based reranker (like a distilled BERT) selects top passages.

# Pseudocode for retrieval + rerank
docs = elasticsearch.search(query, size=100)
reranked = reranker.predict([q + d.text for d in docs])
top_docs = sorted(
    zip(docs, reranked),
    key=lambda x: x[1],
    reverse=True
)[:5]
Enter fullscreen mode Exit fullscreen mode

1.2 LLM Synthesis Layer

Once top passages are identified, Perplexity feeds them into an LLM prompt engineered for concise answers with citations. Their prompts likely follow a pattern:

You are an expert assistant. Given these passages:
1. [URL1]: “...”  
2. [URL2]: “...”
Provide a summary, citing each fact like “[1]” or “[2]”.
Enter fullscreen mode Exit fullscreen mode

Behind the scenes, they leverage OpenAI’s GPT-4 Omni for general questions, then fall back to Sonar (their optimized in-house model) and hell other languages for cost efficiency.

response = openai.ChatCompletion.create(
  model=selected_model,
  messages=[
    {"role": "system", "content": system_prompt},
    {"role": "user", "content": user_query}
  ],
  temperature=0.2,
)
Enter fullscreen mode Exit fullscreen mode

(see the generated image above)

1.3 Citation Extraction & Rendering

To ensure every claim is sourced, Perplexity parses the LLM’s output using a regular-expression post-processor.

import re

citations = re.findall(r'\[(\d+)\]', response.choices[0].message.content)
for idx in set(citations):
    source = top_docs[int(idx)-1].url
    print(f"[{idx}] {source}")
Enter fullscreen mode Exit fullscreen mode

This lightweight approach seamlessly transforms inline markers into clickable footnotes.


2. Citation & Reasoning Pipeline

Beneath the user-facing simplicity lies a multi-agent pipeline:

  1. Query Agent – normalizes input, extracts keywords
  2. Retriever Agent – fetches candidate documents
  3. Reranker Agent – scores relevance with neural network
  4. Synthesis Agent – compiles answer with citations
  5. Verifier Agent – sanity-checks facts via secondary searches

Each agent runs in Docker containers orchestrated by Kubernetes, enabling horizontal scaling as query volume spikes.

apiVersion: apps/v1
kind: Deployment
metadata: { name: synthesis-agent }
spec:
  replicas: 5
  template:
    spec:
      containers:
      - name: synthesis
        image: perplexity/synthesis:latest
        resources:
          requests: { cpu: "2", memory: "4Gi" }
Enter fullscreen mode Exit fullscreen mode

3. Model Orchestration & Agents

Perplexity’s secret weapon is its model-agnostic orchestration:

  • Model Selector: routes queries based on complexity
  • Parallel Inference: runs multiple models concurrently
  • Cost Optimizer: shifts low-priority queries to cheaper models
# Simplified model selection logic
if query.complexity > threshold:
    model = "gpt-4-omni"
else:
    model = "sonar-small"
Enter fullscreen mode Exit fullscreen mode

This micro-optimization yields massive cost savings without sacrificing answer quality.


4. Scalable Infrastructure & Data Flow

Handling 780 million queries monthly demands an iron-clad backend:

  • Edge Caching: Varnish caches frequent answers for <1 second responses
  • Stream Processing: Kafka pipelines ingest clickstreams for real-time analytics
  • Monitoring & A/B Testing: Grafana dashboards track latency, and Ray Tune runs prompt-template experiments
# Kafka consumer example
kafka-console-consumer --bootstrap-server kafka:9092 --topic query-events
Enter fullscreen mode Exit fullscreen mode

Okay, so what happened next literally defies every startup playbook I've ever read.

Check out these numbers and try not to fall off your chair:

growth of perplexity

  • December 2022: Public launch
  • February 2023: 2 million users
  • March 2023: $26M Series A, 10 million users
  • January 2024: $520M valuation
  • April 2024: $1B valuation (unicorn status)
  • December 2024: $9B valuation
  • July 2025: $18B valuation, $100M ARR

That's a 120x valuation increase in 2.5 years. I've been tracking startups for years, and I've never seen anything scale this fast while maintaining quality and user satisfaction.

valuation of perplexity


Their investor list reads like Silicon Valley royalty:

  • Jeff Bezos (Amazon founder)
  • Jensen Huang/NVIDIA
  • SoftBank Vision Fund
  • Yann LeCun (AI pioneer)

When your competitors' leaders are investing in you, you know you're onto something massive.


Let's talk about the man behind this!

aravind srinivas

The 0.01% That Changed Everything

Picture this: You're at IIT Madras, arguably India's MIT. You want Computer Science more than anything. The cutoff comes out, and you miss it by 0.01 points. Most people would be devastated. Aravind Srinivas? He called it destiny.

That microscopic "failure" in 2017 became the catalyst for what's now an $18 billion company processing 780 million queries monthly. I mean, come on - you can't make this stuff up!

Born June 7, 1994, in Chennai, Srinivas grew up in the same city that produced Google CEO Sundar Pichai. But unlike most success narratives, his story starts with what seemed like academic disappointment. Getting stuck in Electrical Engineering instead of CS at IIT Madras felt like the end of the world to him.

But here's where it gets interesting - and this is where I really started appreciating his mindset. That EE background gave him the mathematical foundation essential for machine learning. Plus, a forward-thinking professor's Python programming class equipped him for what would become a Python-centric ML world.

"Nobody was really into Python that much in IIT at the time, and he was very prescient, and that helped me a lot, because obviously, ML is largely being done in Python."

- Aravind Srinivas

The guy literally turned a setback into a setup. And honestly? That's the kind of resilience that separates world-changers from the rest of us.


The Strategic Academic Journey: Building The Foundation

What impressed me most about Srinivas's trajectory is how intentional every move was. After IIT Madras (2017), he didn't just randomly apply to grad schools - he strategically positioned himself at UC Berkeley for his PhD in Computer Science.

But check out his internship game - this is where I realized this guy was playing chess while everyone else was playing checkers:

  • 2018: Research Intern at OpenAI
  • 2019: Research Intern at DeepMind
  • 2020-2021: Research Intern at Google
  • 2021-2022: Research Scientist at OpenAI

journey of aravind

I mean, seriously? This isn't just impressive - it's a masterclass in strategic career building. Each role built upon the previous one, creating comprehensive understanding of the AI landscape from multiple perspectives. More importantly, it built the network and credibility that would prove crucial for Perplexity's success.

His PhD research portfolio reads like a greatest hits of modern AI:

  • Contrastive Learning for Computer Vision (CPCv2)
  • Reinforcement Learning (CURL)
  • Transformers for Image Generation (Flow++)
  • Decision Transformer for RL

The guy was basically positioned at the epicenter of every major AI breakthrough of the last decade.


The Future Vision: Where This Goes Next

Srinivas has set an ambitious target: "a billion queries a week" by end of 2025. That's 30%+ growth from current levels and would position Perplexity as a true Google competitor.

The Roadmap:

  • Comet Browser: Full web browsing with AI integration
  • Advanced AI Agents: Autonomous task completion
  • Voice-First Interfaces: Compete with Alexa/Siri
  • Hardware Integration: Native device experiences

The vision extends to becoming the universal knowledge interface - the single point where humans interact with all information.


My Personal Takeaways

After diving deep into this story, here's what really stuck with me:

  • Embrace Your Setbacks: That 0.01% miss wasn't a failure - it was redirection toward something bigger
  • Build Strategically: Every role, every connection, every skill Srinivas developed had compound effects
  • Solve Real Problems: Perplexity succeeded because it solved genuine user pain points
  • Stay Humble, Think Big: From a $100 domain name to an $18B company - but never losing sight of the core mission
  • Network Intentionally: The relationships built during those internships became Perplexity's foundation

Why This Story Matters

Honestly, researching Perplexity and Aravind Srinivas's journey has been one of the most inspiring deep dives I've done. It's proof that in our rapidly evolving tech landscape, the ability to learn, adapt, and persist matters more than perfect GPAs or predetermined paths.

This isn't just another unicorn story - it's a demonstration that with the right mindset, strategic thinking, and relentless execution, you can challenge trillion-dollar incumbents and win.

For every developer reading this who's ever felt like they missed their shot, or took a "wrong" turn, or ended up in a different place than planned - Srinivas's story is proof that sometimes the detour becomes the destination.

The research revolutionary from Chennai has shown us that sometimes, missing the mark by 0.01% is exactly what it takes to hit the target by 1000%.

As Srinivas says:

"It's only over when you think it's over. Until then, you can always find a way."

And honestly? After researching this incredible journey, I'm more convinced than ever that the best stories are still being written.


Resources & References

1.Times of India: Aravind Srinivas educational qualification and career path
2.Wikipedia: Aravind Srinivas
3.Frederick AI: Founder Story: Aravind Srinivas of Perplexity AI
4.Financial Express: Meet Perplexity CEO Aravind Srinivas: Indian-origin tech visionary
5.Hindustan Times: Who is Aravind Srinivas, Indian-origin CEO who challenged Elon Musk
6.MWC Barcelona: Aravind Srinivas Speaker Bio
7.Perplexity AI SEC Filings (D forms, 2024-2025)
8.Technical Comparison & Analysis: SE Ranking - ChatGPT vs Perplexity vs Google vs Bing
9.YouTube Video: Perplexity CEO Aravind Srinivas: From Academic to $9B AI Pioneer
10.Arxiv Paper: Exploring the Limits of Language Modeling

Top comments (1)

Collapse
 
sandeep_mopuri profile image
Sandeep Mopuri

Your blog brilliantly breaks down Perplexity AI’s innovative technology and sheds light on Aravind Srinivas’s unique journey, demonstrating how resilience and strategic thinking can lead to groundbreaking success. The clear explanations and thoughtful insights make even complex ideas accessible, turning technical research into a source of real inspiration. Keep sharing such stories your work truly deserves recognition!