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Perplexity AI Revenue Sharing Amid Allegations

GOOVER DAILY REPORT September 22, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Introduction to Perplexity AI and Revenue-Sharing Program
  3. Details and Mechanism of the Revenue-Sharing Program
  4. Response to Plagiarism Allegations and Ethical Content Usage
  5. Collaborations and Strategic Partnerships
  6. Impact on the Publishing Industry and AI Content Practices
  7. Conclusion

1. Summary

  • This report delves into the revenue-sharing program initiated by Perplexity AI with various publishers amidst controversies regarding plagiarism allegations. The program aims to align the interests of publishers and the AI firm by sharing ad revenues generated from publisher content referenced in search results. The report examines the details of the program, the partnerships involved, the response to plagiarism claims, and the broader implications for ethical content usage in AI technologies. Key highlights include the multi-year agreements with leading media brands, the program's structure, and the financial benefits offered to publishers. Additionally, the report outlines Perplexity's defensive stance on plagiarism allegations and its commitment to fair use and transparency.

2. Introduction to Perplexity AI and Revenue-Sharing Program

  • 2-1. Overview of Perplexity AI

  • Perplexity AI is an artificial intelligence firm that has recently transitioned into the spotlight due to its new revenue-sharing initiative with various publishers. This initiative, referred to as the 'Publishers' Program', was launched amid serious allegations of plagiarism from reputable sources such as Forbes and WIRED, which accused Perplexity of utilizing their paywalled content without proper attribution. Despite the controversy, Perplexity claims its actions fall under 'fair use' and seeks to establish profitable alliances with media outlets.

  • 2-2. Launch of the Revenue-Sharing Program

  • Perplexity AI launched its revenue-sharing program in response to recent plagiarism allegations, confirming a multi-year agreement with publishers that includes a share of advertising revenue. The program was designed to financially benefit publishers whose content is used in Perplexity's search results. Dmitry Shevelenko, Chief Business Officer of Perplexity, disclosed that the revenue share involves a 'double-digit percentage' but did not provide exact terms. Publishers are compensated per article used, which creates a more transparent payment structure based on direct participation.

  • 2-3. Objectives and Strategic Goals

  • The primary objective of Perplexity AI's revenue-sharing program is to align the interests of publishers and the AI firm, fostering a mutually beneficial relationship that enhances ethical content usage. This initiative aims not only to alleviate plagiarism concerns but also to solidify partnerships with major media brands such as TIME, Der Spiegel, and Fortune. Understanding the need for ethical practices in AI, Perplexity is addressing resistance from stakeholders by emphasizing its commitment to fair compensation and transparency in content attribution.

3. Details and Mechanism of the Revenue-Sharing Program

  • 3-1. Program Structure and Terms

  • Perplexity AI has launched a revenue-sharing program with publishers, designed to offer them a share of advertising profits along with additional benefits such as data insights and free subscriptions. This initiative comes amidst plagiarism allegations from notable publications including Forbes and WIRED, which accused Perplexity of utilizing their paywalled content without proper attribution. The program entails a multi-year agreement with publishing partners and includes a 'double-digit percentage' revenue share, although the specific terms remain undisclosed. Payments are made on a per-source basis, indicating that publishers are compensated for each article used in the AI's responses.

  • 3-2. List of Initial Publishing Partners

  • The initial partners in the revenue-sharing program include prominent publications such as TIME, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and Automattic. This group of partners is significant as they are major players in the publishing industry, providing a diverse range of content that will be utilized by Perplexity AI in its search results.

  • 3-3. Revenue Distribution Model

  • The revenue distribution model of Perplexity's program involves sharing a part of the advertising revenue with its publishing partners based on a 'double-digit percentage.' While specific percentages have not been disclosed, the model appears to be consistent across all participating publishers, offering particularly favorable terms to the initial partners. As the program evolves, Perplexity aims to ensure that the partnership creates vibrant and diverse business models for publishers while addressing the ongoing concerns related to content usage and potential plagiarism.

4. Response to Plagiarism Allegations and Ethical Content Usage

  • 4-1. Allegations from Forbes and WIRED

  • Perplexity AI faced allegations of plagiarism from Forbes and WIRED. These publications accused Perplexity of utilizing their paywalled content without appropriate attribution, raising concerns about ethical content usage in the context of AI-generated search results.

  • 4-2. Perplexity’s Defense and Explanations

  • In response to the plagiarism allegations, Perplexity defended its actions by claiming fair use of the content. They have launched an ad revenue sharing program with publishers, intending to create valuable partnerships. Perplexity's Chief Business Officer, Dmitry Shevelenko, stated that the program would share advertising revenue with its publishing partners, emphasizing the importance of building profitable alliances with media outlets.

  • 4-3. Changes in Content Attribution Practices

  • To address the concerns related to the use of content, Perplexity introduced a program called the 'Publishers’ Program.' This program is designed to ensure transparency in content attribution and to compensate publishers for the articles used in AI responses. Payments to publishers will be made on a per-source basis, providing compensation for each article leveraged in the AI's responses.

5. Collaborations and Strategic Partnerships

  • 5-1. Partnership with Amazon Web Services

  • Perplexity has formed a strategic collaboration with Amazon Web Services (AWS) to enhance its Perplexity Enterprise Pro search tool. This partnership enables Amazon customers to utilize Perplexity's AI-powered search capabilities, leveraging AWS's infrastructure. Additionally, both companies plan to engage in joint events, co-sell engagements, and co-marketing initiatives, thereby enhancing workflows and integration of their technologies.

  • 5-2. Collaboration Benefits for Publishers and Perplexity

  • The revenue-sharing program initiated by Perplexity aims to provide financial benefits to web publishers. By sharing a percentage of ad revenues generated from the content that publishers produce and is referenced in Perplexity's search results, the program aligns the interests of both parties. Publishers such as Time, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and Automattic are among the initial participants. Perplexity's chief business officer, Dmitry Shevelenko, emphasized that the initiative is designed to support a vibrant business model for journalism while ensuring that publishers are compensated for their contributions.

  • 5-3. Future Prospects of Existing Partnerships

  • While the report does not speculate on future developments, it highlights that the revenue-sharing program has commenced amid ongoing criticism regarding copyright usage. Perplexity actively encourages more publishers to participate, aiming to expand the program. As part of this initiative, the Perplexity Publishers’ Program will allow publishers to earn revenue shares from ad interactions linked to their referenced content, particularly through the future introduction of the 'Keep exploring' feature.

6. Impact on the Publishing Industry and AI Content Practices

  • 6-1. Publisher Feedback and Participation

  • Perplexity AI initiated a Publisher Program to distribute advertising revenue to media outlets when their content appears alongside advertisements. This initiative involved major media brands like Fortune, Der Spiegel, and Time. Despite initial resistance, including some publishers dropping out due to scrutiny from outlets such as Forbes and Wired, notable publishers eventually joined. Perplexity's chief business officer, Dmitry Shevelenko, emphasized that the company had to reassure its partners about being a 'good faith actor'. Following allegations of improper citation and content scraping, steps were taken to improve the visibility of citations from publishers in search results. Although partnerships were affected by the negative press, Perplexity continues to develop relationships with publishers, claiming that top brands across various sectors are on board.

  • 6-2. Implications for Ethical AI Content Use

  • Amid ongoing plagiarism allegations against generative AI, Perplexity aims to establish a more ethical framework for content usage. The drive to share advertising revenues with publishers is positioned as a means to rectify past criticisms regarding content scraping and lack of proper citations. The program's framework is intended to contribute to a sustainable ecosystem wherein AI models rely on accurate and credited information from publishers. As part of their commitment, Perplexity has established partnerships that align their interests with those of publishers, seeking to promote diverse business models in the publishing industry.

  • 6-3. Competitive Responses from Other AI Firms

  • The competitive landscape is affected by Perplexity's revenue-sharing initiative, particularly as it coincides with OpenAI's launch of SearchGPT. OpenAI has entered partnerships with media brands but has not established similar revenue-sharing arrangements. Perplexity's actions seem to place it in a position of moral high ground amid criticisms of unethical content practices prevalent within the industry. The shift towards sharing ad revenue could compel other AI firms to reconsider their strategies regarding publisher relationships and content use.

7. Conclusion

  • The revenue-sharing program by Perplexity AI represents a significant step towards ethical and mutually beneficial use of publisher content in AI-generated search results. While the initiative addresses some plagiarism concerns, ongoing scrutiny and publisher feedback will likely shape its evolution. Perplexity AI's collaboration with notable publishers like TIME, Der Spiegel, and Fortune underscores its commitment to ethical practices and fair compensation. The strategic partnership with Amazon Web Services further promises innovative advancements in the industry through enhanced capabilities. Nevertheless, the balance between content monetization and ethical use remains critical. Future prospects suggest that Perplexity's initiative may set a precedent, compelling other AI firms to reevaluate their content usage strategies. However, the specific terms of the Revenue-Sharing Program remain undisclosed, highlighting the need for transparency. The initiative's success will depend on its ability to maintain ethical standards while fostering profitable partnerships.

8. Glossary

  • 8-1. Perplexity AI [Company]

  • Perplexity AI is an AI-powered search engine that initiated a revenue-sharing program with publishers to address plagiarism concerns and ethical content usage in AI technologies. The company is funded by notable investors and focuses on creating mutually beneficial relationships with content creators.

  • 8-2. Revenue-Sharing Program [Program]

  • The program launched by Perplexity AI to share advertising revenues generated from publisher content referenced in its search results. It aims to align the interests of publishers and the AI firm, ensuring that content creators are compensated for the use of their materials.

  • 8-3. Dmitry Shevelenko [Person]

  • Chief Business Officer at Perplexity AI, who is actively involved in promoting and defending the revenue-sharing program amidst controversy. Shevelenko has emphasized the importance of ethical AI content usage and fostered strategic collaborations with key partners.

  • 8-4. Amazon Web Services [Company]

  • AWS is a critical partner for Perplexity AI, supporting Perplexity's generative AI capabilities through Amazon Bedrock. The collaboration focuses on joint events, co-sell engagements, and co-marketing efforts to enhance workflow efficiencies for customers.

9. Source Documents