Powerset

The business was dedicated to building a search engine that could understand and interpret conversational human language, moving beyond the keyword-based systems that dominated the market at the time. Powerset’s technology aimed to comprehend the semantic meaning behind user questions to deliver more precise and contextually relevant answers. To achieve this, the company licensed natural language technology from the renowned Palo Alto Research Center (PARC), which formed the foundation of its system. This system worked by extracting semantic "facts" and relationships from sentences during indexing, then matching them against the linguistic structure of a user's query.

In May 2008, Powerset showcased its capabilities by launching a tool that allowed users to search Wikipedia with conversational phrases instead of just keywords. This demonstration highlighted the potential of its approach. The company's work attracted significant attention and investment, securing $12.5 million in a Series A funding round in late 2007, with backers including The Founders Fund and Foundation Capital. The ultimate milestone in Powerset's journey came on July 1, 2008, when it was acquired by Microsoft for an estimated $100 million. This acquisition was a strategic move by Microsoft to integrate Powerset's talent and natural language technology into its own search offerings, which would eventually become key components of the Bing search engine.