Perplexity is discreetly developing an AI coding tool.

      Perplexity aims to capitalize on the growing AI coding market. The San Francisco-based search startup has developed an internal coding tool called “Teammate,” which may be publicly launched in the future, according to a source familiar with the situation who spoke to Business Insider. The company’s engineers have utilized this tool since May.

      Perplexity gained recognition for its AI search engine that competes with Google. Introducing a coding product would place it in a different realm, aligning it more closely with Cursor, Anthropic, and OpenAI, all of which already offer widely adopted coding solutions.

      What “Teammate” does

      According to an internal announcement reviewed by Business Insider, Teammate is designed to manage software projects from start to finish. It is intended for long-term engineering tasks, including project ownership, issue investigation, and service monitoring. Screenshots indicate that engineers have assigned it real tasks, such as identifying bugs in internal systems. The tool remains model-agnostic, meaning it does not depend on any particular chatbot, which is a significant decision, especially compared to competitors like Claude Code that rely on their proprietary models.

      A representative from Perplexity declined to comment, and it is still uncertain when or if the product will be released. The startup achieved a valuation of $20 billion in a funding round last year, allowing for experimentation.

      “Stop looking at code”

      The initiative comes from leadership. A few weeks prior to the internal launch of Teammate, chief technology officer Denis Yarats advised engineers that by year’s end, or sooner, they should “stop looking at code” and simply utilize AI. This aligns with OpenAI’s internal transition toward coding agents.

      Yarats also countered the criticism that AI generates “slop,” or subpar code. He asserted that “slop is not going to be a thing” as long as the produced code meets quality standards.

      Why it matters

      The timing is significant. AI coding is among the few areas where the technology is already generating substantial revenue, which explains the influx of well-funded players in this space. A model-agnostic tool from a $20 billion search engine would provide a novel perspective in a competitive landscape.

      However, there are two cautions to consider. This report is based on a single source, and Perplexity has yet to verify a launch. Nonetheless, the trajectory appears evident: even an AI search company now regards coding as a valuable domain to explore, alongside providing answers to inquiries.