Perplexity bills itselfas an AI - gift direct option to Google .
Whereas Google operates a search locomotive , Perplexity aims to operate an AI answer engine that take into account users to “ ask any question . ” It then “ search the net to give you an accessible , conversational , and falsifiable answer,”per the society FAQ . If that sounds like an AI - enhance version of lookup , you ’d be correct .
There ’s no question that it ’s been an unabashed hit since its launch in 2022 . But it now finds itself face up litigation .
News Corp has officially filed a lawsuit against Perplexity AI over accusations that the startup has commit copyright infringement on a “ massive scale . ” The suit , filed Monday , alleges that Perplexity arise news show , opinion and analysis now from itsWall Street JournalandNew York Postpublications . This is n’t the first time the AI app has been under flame for its business practices , and it ’s likely not going to be the last .
A new kind of search
Perplexity does n’t practice a proprietary AI , as Anthropic , OpenAI , or Google do . Those models have their own legal trouble , but Perplexity is dissimilar in that it relies on unresolved - source and commercially available models to process the data it scrapes from the public web .
Perplexity ’s economic value propositionis or else to insert itselfbetween search and content producer as a middleman , train its AI on copyright content that its chatbot will then regurgitate ( oftentimes word for word , according to the causa ) to its own paying customers , without make up or assign the original capacity producers .
Its summaries in effect enable user to “ hop the linkup ” that Google Search provide and access high - character information straightaway through its chatbot . And therein lies the problem .
At least in possibility , Google Search and intelligence sites have had a symbiotic ( if tenuous ) relationship with Google earning ad revenue from its search result while driving traffic to the website . Publishers of cognitive content garner receipts through ads placed on the post page itself , resulting in both face getting paid , traffic flowing freely to independent site , and few paywalls to get in the way .
That might sound like a harmonious alliance than it really is , especiallyconsidering a late ruling by the Department of Justice . But it ’s the system that has top to the internet we all revel today .
Perplexity is something new . By its nature as an answer railway locomotive , Perplexity does not drive click traffic to main site . It ’s not tough to see why a company like News Corp could see Perplexity as a true enemy of its operations .
The argument hinges on far more than just dealing with some new competition , though .
Perplexity’s history of sticky-fingered behavior
The caller has already come under firing from publisher and content God Almighty multiple times in 2024 alone . In June , for model , Forbes chief content policeman Randall LaneaccusedPerplexity of “ headstrong infringement ” of Forbes ’ coverage .
Lane noted that the video recording “ outrank all Forbes contentedness on this topic within Google search . ” Perplexity CEO Aravind Srinivasresponded on Twitterthat “ we gibe with the feedback you ’ve shared that it should be a set easier to find the contributing sources and highlight them more prominently . ”
https://twitter.com/JohnPaczkowski/status/1799135156051255799
In July , Conde Nast sent a cease - and - desist letterto Perplexity , again accusing it of lifting content from The New Yorker , Vogue , and Wired — the latter of which published its own damning account on Perplexity ’s action .
“ According to host log , that same IP [ consider to belong to Perplexity ’s web nightcrawler ] visited properties belong to Condé Nast , the media companionship that owns Wired , at least 822 times in the preceding three months,”Tim Marchman wrote for Wired . He observe that figure is “ in all likelihood a pregnant undercount , because the company retain only a belittled portion of its record . ”
The New York Times run on tosend a cease and abstain letter of the alphabet of its ownto Perplexity in October . The issue claims that the inauguration ’s action in argufy and sum up its story violate copyright law . The letter demands that Perplexity “ immediately quit and desist all current and succeeding unauthorized admission and use of The Times ’s depicted object . ”
Too little, too late?
Do n’t gestate Perplexity ’s legal troubles to diminish any time soon . Even with general declension of online journalism in recent decades , there is still way too much money to be made by industry heavyweights at Condé Nast and New Corps to simply roll over .
News Corp ’s lawsuit also say that Perplexity routinely hallucinated and misrepresented facts in its answers , “ sometimes citing an faulty source , and other meter simply inventing and attributing to Plaintiffs fabricated tidings stories . ”
But sentence may not be on their side . Condé Nast CEO Roger Lynch monish in Januarythat , due to the enormous lead clip needed to litigate AI , “ many metier companies will go out of business ” before they see their day in court . The suit also notes that News Corp gain out to Perplexityabout its behaviour in July . The inauguration reportedly “ did not chafe ” to react .
Meanwhile , Perplexity , which is punt by Jeff Bezos , isreportedly in talks for a $ 9 billion valuationin a raw funding around .