AI Search Startup Perplexity Battles Copyright Claims as It Seeks Fresh Funding
Staff Editor AI Startup Perplexity Faces Copyright Allegations Amid Funding Push
Perplexity, an artificial intelligence startup, is navigating turbulent waters as it faces allegations of copyright infringement from major media outlets while reportedly seeking a significant new funding round. The company, which operates as an AI-driven search engine, has found itself at the center of a growing controversy that highlights the ongoing tensions between media companies and emerging AI technologies.
Founded in 2022 by former OpenAI research scientist Aravind Srinivas and his colleagues, Perplexity has quickly gained traction in the tech world. With reported annualized revenue of $50 million and 15 million daily searches, the startup has attracted high-profile investors including Jeff Bezos and Nvidia. The company’s rapid growth is evidenced by its recent funding milestones, including a $74 million raise in January and a $3 billion valuation following an investment from SoftBank.
However, Perplexity’s success has been overshadowed by accusations from prominent media organizations. Forbes and Wired have both raised concerns about the company’s use of their content. Forbes claimed that Perplexity used one of its investigations without proper attribution, a claim that CEO Srinivas acknowledged, stating the need for improved sourcing practices. Wired reported instances of inaccurate summaries and alleged unauthorized content scraping by the AI platform.
The situation has escalated with recent legal actions from The New York Times and News Corp. The Times issued a cease-and-desist letter, alleging copyright violations in Perplexity’s news summaries. In response, Srinivas expressed a willingness to collaborate with publishers, including The New York Times, to address these concerns.
News Corp.’s lawsuit against Perplexity marks a significant escalation in the conflict. The media conglomerate accuses the AI startup of building its user base through unauthorized use of copyrighted material, warning of potential legal consequences. This legal action stands in contrast to the approach taken by other AI companies like OpenAI, which has secured content licensing deals with publishers including News Corp. and Axel Springer.
As Perplexity reportedly seeks its fourth funding round this year, the outcome of these legal challenges and the company’s ability to navigate the complex landscape of AI and copyright law will likely play a crucial role in its future trajectory and the broader development of AI-driven search technologies.
