- Perplexity AI Inc. has launched a new revenue-sharing program for publishers.
- The program compensates publishers when their content is referenced in Perplexity’s search results that generate ad revenue.
- The launch follows allegations from Forbes about content plagiarism and Wired’s report on unethical crawling practices.
- Perplexity’s search engine offers natural language responses and is set to introduce an advertising service.
- Publishers will receive a fixed payment plus a double-digit percentage of ad revenue for each article cited.
- Participating publishers also get a one-year subscription to Perplexity’s premium search engine and access to its APIs.
- Initial participants include major publishers like Der Spiegel, Entrepreneur, Fortune, The Texas Tribune, TIME, and Automattic Inc.
- Perplexity aims to enroll 30 publishers by year-end.
- The program comes as Perplexity seeks to raise over $250 million, potentially valuing the company up to $3 billion.
Main AI News:
Perplexity AI Inc., the prominent startup specializing in AI-powered search technology, has introduced a new revenue-sharing program tailored for publishers. This initiative, designed to address recent controversies and foster collaboration, promises to financially reward publishers when Perplexity monetizes search responses that reference their content. The program comes shortly after Forbes alleged that Perplexity had improperly used content from its articles, sparking discussions about content rights and AI ethics.
Headquartered in San Francisco, Perplexity AI has secured over $165 million in funding to develop its cutting-edge search engine. Unlike traditional search engines that generate lists of web pages, Perplexity’s platform provides natural language responses directly addressing user queries. This approach not only improves user experience but also extends to applications like solving complex mathematical problems. The company’s revenue model includes a paid version offering more comprehensive responses and plans to introduce an advertising service to generate additional income.
The newly launched revenue-sharing program will offer publishers a fixed payment each time their content is included in search results that generate ad revenue for Perplexity. According to CNBC, publishers will receive a double-digit percentage of the ad revenue for each article cited by Perplexity’s search engine. Notably, if multiple articles from the same publisher are referenced in a single search response, the publisher will be compensated separately for each.
In addition to revenue sharing, participating publishers will benefit from a complimentary one-year subscription to Perplexity’s premium search engine, which provides enhanced features and support. The company will also offer access to its APIs and technical assistance, enabling publishers to integrate Perplexity’s search functionality into their websites. This move is intended to strengthen relationships with content creators and enhance the overall value proposition for publishers.
Perplexity AI’s revenue-sharing program follows allegations of content misuse and claims that its web crawlers might be circumventing website opt-out requests. Forbes’ allegations regarding content plagiarism and Wired’s report on the company’s crawling practices have drawn attention to the ethical implications of AI-driven content aggregation. In response, Perplexity aims to demonstrate its commitment to fair practices and transparency through this new initiative.
The company is targeting the enrollment of 30 publishers by the end of the year, with initial participants including major names such as Der Spiegel, Entrepreneur, Fortune, The Texas Tribune, TIME, and Automattic Inc., the entity behind WordPress. Automattic’s involvement is particularly noteworthy as its WordPress.com hosting service supports a vast array of websites that are relevant to Perplexity’s search engine.
The revenue-sharing initiative is launching around the same time as speculation about Perplexity’s next funding round. The company is reportedly seeking to raise over $250 million at a valuation potentially reaching $3 billion. Recent reports indicate that Perplexity’s annual recurring revenue stands at $20 million, and the anticipated revenue from the new search ads could play a crucial role in influencing the company’s valuation and funding prospects. This strategic move aims to bolster Perplexity’s market position and address concerns while paving the way for future growth and collaboration.
Conclusion:
Perplexity AI’s introduction of a revenue-sharing program for publishers represents a strategic effort to address recent controversies and build stronger relationships with content creators. By compensating publishers and offering additional benefits such as a premium subscription and API access, Perplexity aims to foster collaboration and enhance its market position. This initiative is likely to improve Perplexity’s reputation and potentially influence its funding prospects, given the heightened scrutiny and competitive landscape surrounding AI-driven content aggregation and search technologies.
