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From Facebook to Perplexity: Dmitry's Journey in the AI Revolution
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I think a lot of startup success or failure boils down to timing. Perplexity launched right when GPT-3 became available as an API. The ability to succinctly summarize web content just did not exist before that. So if you had tried to launch something with Perplexity six months before, it would have been too early. If you had tried to launch Perplexity six months later, potentially too late. Because we and others were already going down, creating data flywheels and refining the user experience. (Dmitry Shevelenko)
(00:00-09:05)
Dmitry discusses his career journey, emphasizing a key principle: working on products he genuinely loves. He highlights how his passion for these products has guided him through roles at Facebook, Pulse, LinkedIn, Uber, and now Perplexity. Dmitry believes that if he enjoys using a product, others will too, which is a strong indicator of the product's potential success.
The conversation delves into why Dmitry finds the knowledge and answers provided by Perplexity so compelling. He draws a parallel to Ask Jeeves, an early attempt at natural language search, which failed due to technological limitations. However, Perplexity succeeded by launching when GPT-3 became available, allowing for effective summarization of web content. This timing was crucial, as it meant that Perplexity could offer a user experience that directly meets modern expectations for natural language answers.
Alex highlights that Perplexity has created a new category in the market, providing a unique user experience distinct from Google's. This distinct experience makes Perplexity's position defensible, as users now recognize it for specific needs that other platforms might not fulfill as effectively. Dmitry agrees, noting that while established companies like Google have their advantages, they also face challenges in shifting user expectations. Perplexity, by meeting these new expectations, has carved out a significant niche in the AI-driven information economy.
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Innovating AI: Perplexity's Mission to Save Time and Enhance User Experience
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There are three product priorities that are evergreen: accuracy, speed, and readability. Those are always in tension with each other. You can optimize for speed. It may come at the expense of accuracy and readability. You can optimize for accuracy. It comes at the expense of speed. You can optimize for readability. It may come at the expense of both. (Dmitry Shevelenko)
(09:05-17:47)
Dmitry explains that startups like Perplexity benefit from their ability to focus solely on the user without the burden of defending an existing business model. This allows them to prioritize user needs and make quick, iterative improvements. The mantra at Perplexity is to get 1% better every day, emphasizing the importance of shipping updates regularly and maintaining a sense of urgency.
The discussion highlights Dmitry's experience at previous companies like Uber, where user expectations were met with clarity and control. Similarly, Perplexity aims to meet and exceed user expectations by providing precise, quick, and readable answers. When a query is entered into Perplexity, it is broken down into multiple sub-queries. Perplexity's search engine and web index then find reputable sources, extract useful information, and use advanced technologies like LLMs (Large Language Models) for summarization. This entire process happens in under two seconds, balancing speed, accuracy, and readability.
Alex and Dmitry discuss the technical aspects that differentiate Perplexity from other search engines. Perplexity focuses on delivering a seamless user experience by ensuring the perceived latency is minimal. This is achieved by loading sources first, which builds credibility and provides users with immediate content to evaluate. By streaming tokens and presenting sources before the full answer is ready, Perplexity keeps users engaged and informed.
Dmitry's background in anthropology and interest in psychology inform his approach to creating a user-friendly experience. He understands that perceived latency is as important as actual speed, and the user interface must be designed to keep users satisfied while the data is being processed.
The Evolution from Links to Answers: How Perplexity is Redefining Search
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A good answer leads to more questions. What was interesting about the engagement point of view is people want to go down rabbit holes of learning. So oftentimes, you may end up spending more time on Perplexity than you would on Google. But not because you're having to wade through a lot of junk to get useful information. It's because you get a much deeper knowledge. You're inspired to keep probing and getting closer and closer to the ground truth that you're looking for. (Dmitry Shevelenko)
(17:47-24:55)
Dmitry elaborates on the classic innovator's dilemma, explaining that startups like Perplexity have the advantage of focusing entirely on the user's needs without the burden of maintaining an existing business model. This allows them to make decisions that prioritize user experience and enable them to move quickly, constantly improving their product.
Perplexity breaks down user queries into multiple sub-queries, retrieves information from trustworthy sources, and uses advanced technologies to summarize and present answers in natural language—all within two seconds. This process aims to balance speed, accuracy, and readability, ensuring users get reliable information quickly and clearly.
The brothers discuss how Perplexity's approach mirrors the concept of putting a mirror in front of an elevator to make waiting more bearable. By providing immediate context through visible sources, Perplexity reduces perceived wait times and builds trust with users. This method not only enhances user experience but also allows users to evaluate the credibility of the answers they receive.
Dmitry explains that while not all users click through to the sources, knowing the sources are available adds value. It reassures users that they can find more information if needed and often inspires deeper engagement. Perplexity's design encourages follow-up questions, promoting a more in-depth exploration of topics and creating a richer learning experience.
The conversation also touches on the psychology of modern knowledge consumers. Perplexity aims to shift from a link-based economy to an answer-based economy, where users get precise answers quickly, similar to how billionaires optimize their time. This approach caters to users' desire for efficiency and depth in their search for information.
Finally, Dmitry notes that Perplexity's follow-up feature for pro users helps refine queries in real-time, providing more accurate answers. This iterative process of Q&A leads to a deeper understanding and greater satisfaction for users. Perplexity's goal is to create a delightful, easy, and efficient experience, encouraging users to engage more with the platform and explore topics thoroughly.
Redefining Search: How Perplexity AI is Changing the Game
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I think the core human emotion that we tap into is curiosity. If you can make it easier for people to activate their natural curiosity, they enjoy it and it's fulfilling for them. It's useful for them. (Dmitry Shevelenko)
(24:55-34:33)
Dmitry emphasizes that Perplexity taps into the core human emotion of curiosity. By making it easier for users to explore their natural curiosity, Perplexity provides a fulfilling and engaging experience. The platform's design encourages follow-up questions, promoting deeper engagement and a richer learning experience.
The conversation shifts to the business aspects of Perplexity, highlighting its recent successful fundraising round, which attracted high-profile investors like NVIDIA, Jeff Bezos, and Naval Ravikant. Dmitry attributes this success to the product's transparency and the universal need for efficient information retrieval. Investors and users alike can easily evaluate Perplexity's value based on their own experiences with the product.
Perplexity has also received high praise from the media, with the Wall Street Journal ranking it as the top AI chatbot, ahead of major competitors like ChatGPT and Google's Gemini. Dmitry credits this recognition to the company's relentless focus on user experience and rapid execution. He stresses that maintaining this edge requires constant improvement and avoiding complacency.
Alex and Dmitry discuss Perplexity's strategic partnerships with telecommunications companies and phone carriers. These partnerships help expand Perplexity's reach and integrate it more deeply into users' daily lives. Despite being a relatively young company, Perplexity has managed to secure these collaborations by demonstrating its value and potential to these historically slow-moving organizations.
Navigating the Tech Frontier: Perplexity's Journey of Focus, Persistence, and Authentic Growth
(34:33-43:29)
Dmitry talks about the key traits necessary for building a successful product, emphasizing focus and persistence. He highlights the importance of understanding partners' needs and how their organizations make decisions. By using tools like Perplexity for research, companies can structure collaborations that align incentives over the long term. Dmitry stresses the value of transparency and live product demonstrations to showcase the product's capabilities. He believes in forming partnerships that benefit all parties over time, rather than seeking short-term gains.
Alex shifts the conversation to the competitive landscape. He asks Dmitry about dealing with the pressure of competing with larger companies and constantly being in the news. Alex is curious about how this visibility affects Perplexity's strategy and how Dmitry personally handles the attention. He notes that being in a highly dynamic and competitive market requires adapting strategies in real-time.
Dmitry responds by explaining that Perplexity's growth has been driven organically through users sharing their positive experiences on social media. He discusses the importance of consistent product quality and ensuring that users have a good experience. Dmitry believes that authentic, earned media is crucial and that maintaining a high-quality product is the best way to sustain positive publicity. He stresses the value of user trust and the need to avoid overly sales-driven approaches.
Alex comments on Perplexity's relatively small team and asks about Dmitry's experiences with team dynamics, especially compared to his previous roles at Uber and Facebook. He inquires whether Dmitry plans to scale the team significantly or maintain a lean approach. Dmitry reflects on the unique challenges and opportunities of operating with a small team in the AI sector. He acknowledges the high costs of hardware and the limited availability of experts but suggests that a lean, efficient team can still achieve great success.
Keeping it Lean: How Perplexity's Founders Turn Small Teams into Big Success
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We're big believers in the A players. Hire A players and the talent bar is absurdly high. Because if you're intentionally building a small team, there's no room for lag. And it ends up being demotivating if everybody is hustling hard and then you have some folks that aren't. (Dmitry Shevelenko)
(43:29-52:48)
Dmitry discusses the advantages of keeping Perplexity's team small. He explains that having a larger team doesn't necessarily mean faster execution; in fact, it can slow things down. Dmitry emphasizes hiring experienced, high-performing individuals who can make an immediate impact. He believes in maintaining a high talent bar to ensure everyone on the team contributes effectively and efficiently. Dmitry highlights the importance of having a small, agile team to preserve the company's "clock speed" and stay competitive in the fast-paced tech landscape.
Alex then shifts the conversation from business to a more personal angle. He shares a unique interview question he asks potential team members about what they learned from their parents. This question aims to uncover deeper insights into their backgrounds and values. Alex invites Dmitry to share what he learned from his mother, particularly lessons that have shaped his journey from being a student to a leader in the tech industry.
Dmitry reflects on the lessons he learned from his mother. He admires her hard work, hustle, and ability to balance professional success with family life. Dmitry appreciates her attention to detail and her grounding perspective, which reminds him to stay realistic and focused. He finds inspiration in her ability to excel as both a business leader and a parent, a model he aspires to follow as a father of three daughters.
Alex shares his perspective on their mother's influence, highlighting her remarkable ability to connect with people on a personal level. He admires her talent for building lasting relationships and creating a sense of community among colleagues and friends. Alex believes this ability to form deep connections is crucial for leadership and has been a significant part of his own growth.
Dmitry further explores the impact of their immigrant background on their professional lives. He reflects on how being part of an immigrant family has shaped his resilience and ambition. Dmitry notes that Silicon Valley is a place where immigrants and their children often thrive, bringing diverse perspectives and strong work ethics. He sees their journey as a source of strength that has influenced his roles at major tech companies and his approach to expanding Perplexity globally.
The Immigrant Hustle: Balancing Big Dreams and Family Life
(52:48-1:02:58)
Dmitry talks about the motivations and mindset shaped by his immigrant background. He mentions having a "healthy chip on his shoulder" that pushes him to aim high and succeed. Dmitry reflects on the desire to be associated with well-known brands and then transitioning to creating his own identity. He highlights the influence of his immigrant parents, emphasizing that their experiences and resilience shaped his own career and ambitions.
Alex shifts the focus to Dmitry's entrepreneurial journey, specifically his experience with Tortoise, a hardware robotics company. Alex admires Dmitry's resilience and integrity throughout the process. He asks Dmitry to share the lessons learned from Tortoise, including the challenges and how they helped shape his approach to new ventures.
Dmitry explains that Tortoise focused on delivery and mobile vending robots but faced significant challenges. He advises potential hardware founders to avoid hardware due to its complexity and cost. Despite multiple pivots and efforts, Tortoise eventually had to close. Dmitry highlights the importance of knowing when to stop pursuing a failing venture. He values the experience and believes it prepared him well for his role at Perplexity, reinforcing a mindset of ownership and resilience.
Alex acknowledges Dmitry's continued hustle and determination, then steers the conversation to family. He asks Dmitry about the lessons he imparts to his three daughters and how his professional experiences influence his parenting.
Dmitry shares the challenges of balancing a startup career with family life. He emphasizes the importance of being present when with his children, as they can easily detect when his mind is elsewhere. Dmitry tries to integrate his work into family conversations, making his kids part of the journey by discussing Perplexity's projects. He hopes to instill a sense of excitement and passion for meaningful work in his children, while also striving to provide them with opportunities and resources for their future.
Alex concludes by expressing confidence in Dmitry's ability to make his ancestors proud and thanking him for sharing his story and insights.
Check the the episode's Transcript (AI-generated) HERE.
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Author
Experience-focused Leaders is the #1 Multimedia Podcast! We talk to senior business & tech leaders about the experiences that move forward organizations, customers and society at large. True to form, we mix audio, video, web and eBook formats to turn these authentic conversations into personalized nuggets you'll remember & use.
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