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AI Search Engine Drama: How Perplexity is Throwing Media Companies a Bone

a red sign that reads free the media

Photo by Marija Zaric on Unsplash

In the cutthroat world of tech and media, Perplexity AI is stirring up a storm with its bold new revenue-sharing strategy that’s got publishers perking up their ears.

The AI search engine startup, valued at a whopping $18 billion, is offering publishers a slice of the revenue pie – because apparently, exposure doesn’t pay the bills anymore.

The Cash Grab Strategy

Perplexity has earmarked $42.5 million to distribute among publishers willing to play ball. Their innovative approach? A $5 monthly subscription service called Comet Plus, where publishers get a sweet 80% of the revenue. CEO Aravind Srinivas claims this is about creating “a better internet” – but let’s be real, it’s also about avoiding legal headaches.

The Legal Landscape

This move comes after several media giants like Forbes and Condé Nast accused Perplexity of using their content without permission. The startup is currently battling copyright infringement lawsuits, with a spokesperson confidently declaring they believe “AI companies will win all of these lawsuits”.

A New Media Ecosystem?

While traditional web traffic models are becoming obsolete, Perplexity is positioning itself as a disruptor. Jessica Chan, head of publisher partnerships, is clear: they want to “create a new standard for compensation” in the AI-driven media landscape.

With a cheeky $34.5 billion offer to acquire Chrome and a growing war chest, Perplexity is signaling it’s not just another startup – it’s a potential game-changer in how we consume and monetize digital content.

AUTHOR: pw

SOURCE: The Mercury News