Forget about the tech, OpenAI and Perplexity are brands too

On one side: OpenAI replaced older GPT models like -4o and o3 with GPT-5 without warning on August 7, regardless of whether users liked it, causing outrage. The result: CEO Sam Altman promised to restore GPT-4o and increase GPT-5’s reasoning limits.

OpenAI clearly forgot that it’s not just a tech business. It’s part of a brand-consumer relationship — something that’s built on trust.

As Criteo’s vp research and head of AI, Liva Ralaivola noted: AI products stop being just about the tech and start being about the brand relationship when user experience is affected.

“At that point, the user starts to think not just about what the product can do, but what brand is behind it,” said Criteo’s vp research and head of AI, Liva Ralaivola. “It’s the same way Air Jordans became more than shoes — the experience and meaning behind them pulled people closer to the brand.”

Perplexity’s brand was also recently questioned when the company offered $34.5 billion to buy Google’s Chrome browser on August 12. Empty promise? Probably. The smart AI search company had already been linked to rumored acquisition talks with Apple and Meta, and floated a bid for TikTok in the U.S. — none of which have happened.

Speaking specifically about the proposed Chrome acquisition, Perplexity’s head of communications, Jesse Dwyer, told Digiday that Perplexity’s bid for Chrome is serious and relevant to all internet users.

“Remember, Perplexity was asked by both the DOJ and Google to provide input on the remedy phase of the case,” he said. “We believe that if the ruling in the case forces Google to sell Chrome we are the best possible stewards of it. Chrome and Chromium are fundamental to the open internet.”

Still, for Perplexity, landing headlines gets everyone talking, but can slowly erode trust in the company and its promises. Least of all because it’s already in the middle of copyright lawsuits with News Corp, Forbes and Japan’s largest newspaper, Yomiuri Shimbun.

“Leaking something as massive as an intent to buy Chrome, which owns 65% of the market, is not a casual stunt,” said Bob Walczyk, CEO of MadConnect. “If you put that into the marketplace, it should be because there’s a clear strategic reason not just for shock value. Without that, you risk telling the world you’re making moves you can’t deliver. That’s exactly why Perplexity loses credibility here.”

The common thread is a lack of understanding of what a brand means. OpenAI underestimated the emotional loyalty people had for specific models. Perplexity overestimated the goodwill generated by making big, implausible moves. Both missed the same reality: AI companies are now operating in a consumer-brand world, where perception can be as critical as performance.

“A brand walks into the room before the business does,” said Walczyk. “In AI, the market moves so fast that the brand often can’t keep pace with the product’s evolution. That’s the nature of this space, rapid change, constant breakthroughs. It leaves many people unclear about what these companies actually do or how they’re different. That’s exactly where a strong brand becomes essential.”

In the case of OpenAI and Perplexity, it’s no longer just about building new features and iterations of the product anymore. What’s needed is a proper brand strategy that marries the product with the emotional attachment to them from users.

“Great technology is important, but on its own it’s not enough,” said Debra Aho Williamson, founder and chief analyst at Sonata Insights. “People also support companies because they share the same values, they treat their customers well, and they are good citizens of the world.”

Take Apple, for instance. Every time the company launches a new iPhone, it’s no longer just about the phone itself, but the entire experience and lifestyle it provides its users.

“AI companies need to take the same approach, shaping launches, comms, and product strategies to create experiences people feel attached to, not just tools they use.”

Which means every rollout and every interaction with the public or with its users matters. OpenAI and Perplexity might have started out purely tech-focused, but bringing users into their fold has ultimately changed the dynamic. Get the tech right and you’re on the right track. But building brand trust and loyalty is the only way for any company, including OpenAI and Perplexity, to maintain longevity.

As Williamson put it: OpenAI and Perplexity are not necessarily underestimating the emotional and cultural impact of their products, “but they are probably underestimating the value of creating and fostering emotional attachment to their products,” she said.

Brendan Norman, CEO and co-founder of Classify agreed. 

“Losing trust and loyalty can quickly kill an entire company and / or instantly destroy market cap, which takes precious time and resources to rebuild,” he said.

OpenAI didn’t respond to Digiday’s request for comment.