In a blistering statement, CNN—which is owned by media giant Warner Bros. Discovery—argued that tech platforms must not be allowed to build massive valuations off the backs of original content creators without permission or compensation, News.Az reports, citing Reuters.
“CNN’s lawsuit stands for the proposition that Perplexity, a company valued at tens of billions of dollars, should not be able to steal from entities that create the original content Perplexity exploits,” the news organization said.
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Perplexity operates as an AI-powered “answer engine” that scours the live internet to synthesize summaries and directly answer user queries. Publishers argue that this model actively starves them of vital web traffic by displaying full summaries of their articles, meaning users never click through to the original source.
CNN emphasized that high-quality journalism is dangerous and expensive to produce, stating that commercial operators must pay to utilize it.
“We prefer that they do so through sensible licensing arrangements,” the statement continued, “but if they refuse to do that as Perplexity has so far refused to do, they will have to pay through legal damages. There is no free option.”
Perplexity’s growing legal headacheThe lawsuit adds to a rapidly mounting mountain of litigation for Perplexity. The AI firm is already battling separate copyright infringement lawsuits from several major media entities and digital platforms, including:
The New York Times
Dow Jones (publisher of the Wall Street Journal)
Reddit
The wider media landscape has been in open conflict with generative AI developers since the viral launch of OpenAI’s ChatGPT in late 2022. Authors, artists, and news publishers alike have raised intense alarms over their intellectual property being repurposed into chatbot responses without consent.
While Perplexity faces an aggressive legal onslaught, other AI giants have taken a more collaborative path. In recent months, tech firms like OpenAI have successfully negotiated multi-million dollar licensing partnerships with major publishers to legally train their models on verified news archives, providing a blueprint for compensation and outbound link attribution that Perplexity has so far bypassed.
