Perplexity will now share revenue from AI searches with publishers
What's the story
Perplexity, a start-up developing an artificial intelligence (AI) search engine to rival Google, has announced a new program allowing publishers to share in the revenue generated from their content. The move comes as part of Perplexity's strategy to address concerns and lawsuits from some media outlets over the use of their work. The company has set aside $42.5 million for this initiative, according to CEO Aravind Srinivas.
Innovative approach
Publishers can earn money through various means
The new program allows publishers to earn money when their content gets traffic through Perplexity's Comet internet browser, shows up in search queries on Comet, or is used to complete tasks by Comet's AI assistant. The funds for compensating publishers will come from the revenue generated by Comet Plus, a new subscription tier for the Comet browser. Users will pay $5/month for curated content from participating publishers and 80% of this revenue will go to them.
Industry perspective
Creating a new standard for compensation
Srinivas believes that while AI is helping to create a better internet, publishers still need to be compensated. He said, "So we think this is actually the right solution, and we're happy to make adjustments along the way." Jessica Chan, head of publisher partnerships at Perplexity, stressed that the traditional model where media outlets rely on web traffic and clicks is "an old model." She added, "We just want to create a new standard for compensation."
Legal battles
Perplexity's partnerships and legal challenges
Perplexity has previously partnered with outlets like TIME, the Los Angeles Times, and Fortune for ad revenue sharing. However, it has also faced legal challenges from media organizations such as Forbes and Conde Nast for using their content in AI news summaries without permission. The company recently lost a bid to dismiss a copyright infringement lawsuit filed by News Corp's Dow Jones and the New York Post.
Company defense
AI companies will win all lawsuits, says Perplexity
Responding to the legal challenges, Perplexity spokesperson Jesse Dwyer said, "We are confident AI companies will win all of these lawsuits." He added that they look forward to settling the law on this early on, so everyone can benefit from AI.