Perplexity AI, a rapidly growing artificial intelligence startup known for its AI-assisted search capabilities, is set to introduce advertising on its search app in the fourth quarter of this year, CNBC has learned. This move comes amid ongoing controversy, as the company has faced allegations of plagiarizing content from various media outlets. 

Perplexity, which boasts over two million app downloads and handles more than 230 million queries monthly, is actively promoting its app’s expanding reach and user base through a circulated pitch deck. The company claims that U.S. queries have increased eightfold over the past year. Notably, Perplexity’s valuation surged to over $1 billion following a funding round in April, doubling its value in just three months. 

However, the company’s success has been overshadowed by plagiarism concerns. Forbes and Wired reported instances where their content was allegedly used by Perplexity without proper attribution. In response to these allegations, Perplexity has updated its Pages feature to enhance source citation and ensure better attribution within generated content. 

To address these issues and foster better relationships with content creators, Perplexity recently launched a revenue-sharing model. This initiative allows publishers to earn revenue when their articles are cited in Perplexity’s search responses. The company has already enlisted prominent media outlets such as Fortune, Time, Entrepreneur, The Texas Tribune, Der Spiegel, and WordPress into its “Publishers Program.” According to Dmitry Shevelenko, Perplexity’s Chief Business Officer, the program aims to enroll 30 publishers by year’s end. 

Perplexity’s advertising strategy will employ a cost-per-thousand-impressions (CPM) model, with rates expected to exceed $50. Key advertising categories will include technology, health, entertainment, finance, and food and beverage, targeting a highly educated and affluent user base.