NY Times Sues AI Firm Perplexity Over Copyright Infringement

Major Media Giant Takes Legal Action Against AI Startup

The New York Times has filed a significant lawsuit against AI search engine company Perplexity, alleging widespread copyright infringement of its journalistic content. The legal action, filed in the Southern District of New York on December 5, 2025, represents the second major copyright battle the newspaper has initiated against artificial intelligence companies, following its 2023 lawsuit against OpenAI and Microsoft.

The Core Allegations

According to court documents, The Times claims that Perplexity has been systematically using its copyrighted articles, videos, podcasts, and other content without permission to train AI models and generate responses that 'directly compete' with the newspaper's own reporting. The lawsuit alleges that Perplexity's AI-powered search engine reproduces content that is 'identical or substantially similar' to Times articles, effectively bypassing the newspaper's paywall and subscription model.

'For the past year and a half, we have repeatedly contacted Perplexity with demands that they stop using our copyrighted material,' stated a Times spokesperson. 'Despite our clear warnings, they have continued to use our journalism without permission or compensation.'

Perplexity's Rapid Rise and Legal Scrutiny

Perplexity AI, founded in 2022 by Aravind Srinivas and three other engineers, has experienced explosive growth in the AI search market. The company, which describes itself as an 'answer engine' rather than a traditional search engine, uses large language models to provide synthesized responses to user queries with inline source citations. According to Wikipedia, Perplexity was valued at $20 billion as of September 2025 and processes approximately 780 million monthly queries.

The company's rapid ascent has attracted significant investment, including funding from Jeff Bezos, Nvidia, and SoftBank Vision Fund 2. However, its business practices have drawn increasing scrutiny. 'This isn't just about one company - it's about establishing ground rules for how AI can ethically use journalistic content,' explained copyright attorney Maria Rodriguez. 'The Times is setting an important precedent here.'

Broader Industry Context

The lawsuit comes amid a broader industry shift in how tech companies approach news content for AI training. In a notable contrast, Meta (formerly Facebook) announced on the same day that it had reached licensing agreements with several major news organizations including CNN, Fox News, and France's Le Monde. These deals will allow Meta's AI chatbot to provide real-time news updates with proper attribution and compensation to publishers.

'We believe in building sustainable partnerships with content creators,' said a Meta spokesperson. 'Our agreements ensure publishers are fairly compensated while we provide users with accurate, timely information.'

Legal Precedents and Industry Impact

The New York Times' ongoing lawsuit against OpenAI and Microsoft, filed in December 2023, has already established important legal precedents. In March 2025, Judge Sidney Stein rejected most of OpenAI's motion to dismiss, allowing copyright claims to proceed based on evidence that ChatGPT could reproduce Times articles nearly verbatim.

Legal experts suggest the Perplexity case could be even more significant because it involves an AI company specifically positioning itself as a news and information provider. 'Perplexity markets itself as an alternative to traditional search engines that streamlines information gathering,' noted technology analyst James Chen. 'If they're using copyrighted journalism without permission, that strikes at the heart of both copyright law and journalistic business models.'

What's at Stake

The outcome of this lawsuit could have far-reaching implications for the AI industry and journalism. If successful, The Times' action could force AI companies to either license content from publishers or develop alternative training methods. It could also establish clearer boundaries around what constitutes fair use in the context of AI training.

For Perplexity, the stakes are particularly high. The company has reportedly explored major acquisitions, including a bid for Google Chrome and a proposed merger with TikTok US. A significant legal judgment could impact its $20 billion valuation and future growth prospects.

'This is about more than just compensation,' concluded The Times' legal representative. 'It's about protecting the integrity of journalism and ensuring that those who create valuable content are properly recognized and rewarded in the AI era.'