Perplexity AI (Perplexity), an artificial intelligence (AI) startup specializing in Retrieval-Augmented Generation (RAG), has introduced a subscription service called Comet Plus for its AI web browser, Comet. This new service directly compensates news organizations when their articles are used.
Comet Plus is an innovative program that allocates 80% of user subscription revenue to participating media outlets. This initiative appears to be a proactive response to potential legal challenges surrounding unauthorized use of news content.
According to tech industry sources and international media reports on Wednesday, Perplexity has officially launched Comet Plus. Subscribers can access curated articles from participating news organizations for a monthly fee of 5 USD.
Aravind Srinivas, Chief Executive Officer (CEO) of Perplexity, stated that AI is playing a crucial role in improving the internet, and it’s essential that news organizations receive fair compensation. Further noting that it believes this model could be a viable solution.
Perplexity officially launched Comet on July 9. Comet streamlines complex search tasks through an interactive interface, enabling users to access desired information without navigating multiple apps.
Currently, Perplexity is granting priority access to Comet for subscribers of its Max plan (200 USD per month) and select pre-registered users. The company plans to expand access to the general public in the future.
To establish its model, Perplexity has allocated a substantial compensation pool of 42.5 million USD to be distributed among news organizations during the initial phase.
The strategy is to secure funding through subscription fees once the Comet Plus service gains traction.
CEO Srinivas likened the service to Apple News+.
Previously, Perplexity shared a portion of advertising revenue generated from articles displayed in its AI browser with news organizations through its Publisher Program. However, there was no revenue sharing when AI analyzed articles published on web pages.
Jessica Chan, head of Publisher Partnerships at Perplexity, commented that the traditional compensation model based on web traffic and clicks is no longer effective and that they’re committed to establishing new standards.
Bloomberg reported that Perplexity has become the first AI startup to implement a revenue-sharing model with news organizations.
The industry is closely monitoring whether Perplexity’s revenue distribution program will shift the landscape of copyright disputes between AI companies and news outlets.
Perplexity itself is facing multiple lawsuits from news organizations in various countries, including the U.S. and Japan.
Last year, Dow Jones, the parent company of The Wall Street Journal (WSJ), and News Corp, which owns the New York Post, filed a copyright infringement lawsuit against Perplexity. On August 21, U.S. District Judge Katherine Failla rejected Perplexity’s motions to dismiss or transfer the lawsuit.
