AI Startups Raise Millions, Targeting Google's Search Dominance

The rise of AI chatbots like ChatGPT and Perplexity is reshaping the landscape of information retrieval, with a new wave of startups betting on the decline of traditional Google search. At least a dozen startups are developing tools to help businesses influence how AI models collect and present brand information, marking a new iteration of search engine optimization (SEO).

One such startup, Athena, focuses on AI visualization and was founded by former Google employees with an initial funding of 2.2 million dollars. The company has already accumulated over 100 clients, including Paperless Post. Athena's core business involves helping brands understand the information retrieval logic of different AI models and providing strategies to optimize their online presence.

Other players in this field are also attracting significant capital. Profound, for instance, has raised over 20 million dollars and focuses on tracking how AI chatbots convey brand information. Its client list includes major enterprises. This shift aligns with Google's own technological advancements, as the search giant is reducing the exposure of traditional website links through features like AI overviews and conversational search.

The trend is being dubbed the "zero-click internet" by the marketing industry, suggesting that in the future, the primary visitors to websites may be algorithmic bots rather than real users. Although most technologies are still in the experimental phase, marketing professionals are eager to understand how AI systems influence brand recognition. Scrunch AI, another entrant in this space, has secured 4 million dollars in funding and is collaborating with over 25 clients. One of its clients reported a 9% increase in registrations through AI channels this year.

Compared to the 90 billion dollar traditional SEO market, AI search optimization is still an emerging field. However, experts predict that demand will accelerate rapidly. Multiple consultants forecast that AI visualization technology will soon constitute a significant portion of their work. Nevertheless, the tools in this domain are generally in the early stages of development, and marketers are continuously testing their effectiveness. The co-founder of Scrunch emphasizes that while websites will not disappear as information carriers, a substantial portion of future traffic will likely originate from algorithmic bots.