The Politics of Business and Culture

Join the Ken dot Live...

Get my daily email on the state of the little guy
(that’s us!) and how we can stick it to the big guy (them!)…

Perplexity AI Launches Revenue Sharing Model with Major Publishers Amid Legal Scrutiny

In a strategic shift, Perplexity AI, a burgeoning startup known for its AI-driven search engine, has unveiled a new revenue-sharing model with notable publishers, potentially setting a precedent in how AI platforms harmonize copyright compliance and commercial interests. The initiative, dubbed the Publishers’ Program, was announced on July 30, amidst increasing scrutiny over alleged copyright infringements and unauthorized content scraping.

The program kickstarts with high-profile partnerships including Time, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and WordPress. Under this model, Perplexity AI intends to introduce targeted advertising via its related question feature, which will enable brands to sponsor follow-up questions, thereby generating potential revenue streams for participating publishers whenever their content is utilized.

Moreover, partners will gain access to Perplexity’s Online LLM API and receive comprehensive developer support. This arrangement allows each publisher to integrate a tailored answer engine directly onto their platforms, potentially enhancing user engagement and content monetization strategies—key aspects for small business owners and solopreneurs looking to leverage AI without extensive tech infrastructure.

Additionally, employees of the partnered publishers will benefit from complimentary access to Perplexity’s Enterprise Pro service for one year, aiming to bolster publisher capabilities in managing and deploying AI solutions.

This move comes in the wake of accusations from Forbes, claiming Perplexity’s AI deliberately utilized the magazine’s paywalled content without authorization. The revenue-sharing model may also serve as a tactical maneuver to circumvent legal challenges similar to those faced by OpenAI, as highlighted by Juliette Powell, an author and adjunct professor at New York University. “They’re trying not to get sued,” she stated, underscoring the growing legal pressures on AI entities.

Michael Bennett, an AI policy adviser at Northeastern University, remarked on the shift, noting, “They were modifying their actions to neutralize what content creators see as a threat to their viability, their commercial viability.” His commentary hints at the broader industry implications, suggesting that Perplexity’s strategy not only seeks compliance but also aims to distinctly set itself apart from competitors like OpenAI.

We typically get the short end of the stick…from big business, from crappy employers and from crappy governments. So what I’ve (and my esteemed and impeccably dressed cohorts) decided to do is call them out on it…and also give you solutions to start tilting the playing field in your favor.