The New York Times has filed a lawsuit against AI startup Perplexity, accusing the company of using its content without permission or compensation. This legal action comes as Meta announces partnerships with major media outlets, highlighting the ongoing debate over content ownership in the AI era.
Lawsuit Against Perplexity
The lawsuit, filed in a New York federal court, alleges that Perplexity illegally crawled and used the Times’ original journalistic reporting. The publisher had previously sent cease‑and‑desist notices to Perplexity in October 2024 and July 2025. Despite 18 months of negotiations, no licensing agreement was reached.
Meta’s New Media Partnerships
Meanwhile, Meta has partnered with media outlets including CNN, Fox News, People Inc., and USA Today. This collaboration aims to provide social‑media users with real‑time information when they ask Meta AI questions related to news.
Broader Industry Tension
These parallel developments highlight the tension in the AI market as publishers seek compensation for their content being used to train large language models. Since the release of ChatGPT, content creators have been fighting back against what they see as unauthorized use of their work.
Other Legal Challenges for Perplexity
Perplexity is not alone in facing legal challenges. Amazon recently threatened to sue the company over its AI shopping agent, which was allegedly posing as human users on Amazon’s website. Reddit has also filed a lawsuit against Perplexity and other data scrapers for illegally stealing content to train AI models.
Expert Opinions
Experts suggest that these cases underscore the need for a licensing agreement between content creators and AI vendors. Michael McCready, managing director of McCready Law in Chicago, believes the outcome of the NYT lawsuit could set a precedent for other AI companies. However, Perplexity could argue that its use of the content is transformative and falls under fair use.
Michael G Bennett, associate vice chancellor for data science and artificial intelligence strategy at the University of Illinois Chicago, proposes a solution similar to the music industry’s licensing agreements, allowing AI models to access content while ensuring creators are compensated.
Looking Ahead
As the AI market continues to evolve, finding a balance between innovation and fair compensation for content creators will be crucial. The outcome of these lawsuits and partnerships may shape the future framework for how AI systems source and pay for the information they rely on.
