In a legal move that could have significant implications for the intersection of artificial intelligence and journalism, Rupert Murdoch’s Dow Jones and the New York Post have launched a lawsuit against the AI startup Perplexity. This litigation, filed in New York, accuses Perplexity of executing a “brazen scheme” to use the publishers’ content without authorization for its AI-driven search engine, potentially diverting users and revenue from the news outlets.
Both Dow Jones and the New York Post are subsidiaries of News Corp, a media conglomerate with a robust portfolio, including The Wall Street Journal. They allege that Perplexity is engaging in widespread unauthorized copying of their journalistic work. This copying, they claim, is part of the startup’s initiative to build a funding round that could value Perplexity at $8 billion, as noted by the Financial Times.
The lawsuit articulates concerns that Perplexity’s use of a large language model engine, incorporating technology from leading AI platforms such as OpenAI and Anthropic, effectively constructs responses that substitute the role of traditional news outlets. The complaint suggests that this represents “massive” infringement on copyrighted news content. The legal action underscores ongoing tensions between traditional media companies and AI firms over the use of content to train algorithms and provide timely information.
This case is part of a broader discussion in the publishing industry about the relationship between publishers and AI technologies. Notably, some AI companies, including OpenAI, have pursued licensing agreements with publishers like News Corp and the Financial Times. In these cases, select summaries, quotes, and links are attributed appropriately. However, the current lawsuit illustrates the complex challenges of finding equitable solutions as AI technologies continue to evolve. It’s noteworthy that, despite the legal pressure, Perplexity reportedly “did not bother to respond” to a prior notice of infringement, highlighting the contentious nature of this dispute.