Perplexity AI has experienced a dramatic 80% decline in global app downloads over the past six weeks, as reported by investor Sasha Kaletsky. This significant drop, occurring between October 15 and November 25, 2025, marks a stark contrast to the company's previous growth, including a 600% increase in India following a partnership with Airtel. Analysts suggest that the downturn is due to Perplexity AI's heavy reliance on paid marketing, perceived declines in product quality, and fierce competition from industry giants such as OpenAI, Google, and xAI. This situation underscores the difficulties faced by independent AI startups in a market increasingly dominated by larger, established players.