In a surprising turn of events, Perplexity CEO Aravind Srinivas appeared at a News Corp. conference just days after the media giant filed a lawsuit against his company. The lawsuit claims that Perplexity, an AI search firm, has infringed on News Corp.’s copyrights by using its content without permission.
A Surprising Lawsuit
During his appearance at the WSJ Tech conference, hosted by The Wall Street Journal, Srinivas wasted no time addressing the lawsuit. He expressed his surprise, noting that his company had previously shown interest in having a conversation with News Corp. about a potential partnership.
“They reached out to us around June,” Srinivas said. “We responded, expressing our willingness to discuss how we could use their content in a commercial manner. So, we were surprised by the lawsuit because we wanted to have a conversation.”
Comparing to Spotify
Srinivas likened Perplexity’s mission to that of Spotify, the music streaming platform that transformed the music industry. He highlighted how Spotify found ways to compensate creators while adapting to new technology and consumer habits.
“I’m here to clarify that we would love to establish a commercial contract,” he explained. “We’ve launched a select publisher program where we intend to share advertising revenue with content publishers, similar to how Spotify pays its creators.”
How Perplexity Works
Perplexity aims to be a competitor to Google, providing users with direct answers to their questions by processing a wide range of content. Unlike Google, which primarily links to external sites, Perplexity summarizes and condenses information, providing citations but sometimes making it unnecessary for users to visit original sources.
However, this approach has raised concerns among publishers. News Corp. alleges that Perplexity not only uses its content but also sometimes generates incorrect information while attributing it to their outlets.
Addressing Publisher Concerns
Srinivas acknowledged the challenges and issues that arise from using AI. “We try our best to ensure our models don’t just regurgitate content,” he said. “Instead, we aim to provide diverse perspectives from multiple sources.”
He also addressed the problem of hallucinations, a term used to describe when AI generates inaccurate information. “We understand that media outlets are right to be concerned if they’re cited in an inaccurate context. We’re working hard to ensure that our answers are as accurate as possible,” he added.
The Future of Perplexity
Despite the ongoing legal challenges, Perplexity is actively seeking funding, aiming for a valuation of around $9 billion in its latest round. Srinivas expressed optimism about the company’s future, stating, “I hope we will be profitable in three to five years, but the evolving legal landscape around generative AI will undoubtedly impact our trajectory.”
Conclusion
Aravind Srinivas’s appearance at the News Corp. conference highlights the complexities facing AI companies like Perplexity. As they strive to innovate while navigating legal challenges, the future of AI-generated content and its relationship with traditional media remains uncertain.
