This attacks the basis of the entire AI industry. These fancy AI models collect data from the internet and other sources and process them in complex ways to a point where if you send it a human language question, it can pull from this knowledge base and give you an intelligent (mostly) sounding answer. It is pretty remarkable.
However, you cannot get away from the fact that the data isn't theirs. They get it from the internet which is owned by others like NYT. What is right and what is wrong here?
Technically AI cos use other people's data for free and run their businesses and make money. Should they be allowed? Or should they pay for it?
If NYT and others decides to be obstinate and refuse money and not want to share its IP, then AI companies cannot run effectively.
What is the way out here?
New York Times Sues A.I. Start-Up Perplexity Over Use of Copyrighted Work
https://www.nytimes.com/2025/12/05/technology/new-york-times-perplexity-ai-lawsuit.html
However, you cannot get away from the fact that the data isn't theirs. They get it from the internet which is owned by others like NYT. What is right and what is wrong here?
Technically AI cos use other people's data for free and run their businesses and make money. Should they be allowed? Or should they pay for it?
If NYT and others decides to be obstinate and refuse money and not want to share its IP, then AI companies cannot run effectively.
What is the way out here?
New York Times Sues A.I. Start-Up Perplexity Over Use of Copyrighted Work
https://www.nytimes.com/2025/12/05/technology/new-york-times-perplexity-ai-lawsuit.html
Quote:
By Cade Metz and Michael M. Grynbaum
Cade Metz reported from San Francisco, and Michael M. Grynbaum from New York.
Dec. 5, 2025 Updated 10:11 a.m. ET
The New York Times claimed in a lawsuit on Friday that its copyrights were repeatedly violated by Perplexity, an artificial intelligence start-up that has built a cutting-edge internet search engine.
The Times said in its lawsuit that it had contacted Perplexity several times over the past 18 months, demanding that the start-up stop using the publication's content until the two companies negotiated an agreement. But Perplexity continued to use The Times's material.
The suit, filed in federal court in New York, is the latest in a growing legal battle between copyright holders and A.I. companies that includes more than 40 cases around the country. On Thursday, The Chicago Tribune filed a suit against Perplexity, accusing it of copyright infringement. And last year, Dow Jones, owner of The Wall Street Journal, The New York Post and other publications, made similar claims in a lawsuit against the start-up.
The Times's suit is the second it has filed against A.I. companies. In 2023, The Times sued OpenAI and its partner Microsoft, arguing that the companies trained their A.I. systems using millions of Times articles without offering compensation. Microsoft and OpenAI, the maker of the chatbot ChatGPT, have disputed the claims.
Perplexity, a San Francisco company founded in 2022 by a former OpenAI engineer and other entrepreneurs, operates a search engine powered by the same type of A.I. technology that underpins ChatGPT.
The suit accuses Perplexity of violating The Times's copyrights in several ways, most notably when the start-up's search engine retrieves information from a website or database and uses that information to generate a piece of text and to respond to queries from internet users. That would not be a fair use of that material, the suit claimed, because Perplexity grabbed large chunks of the publication's content in some cases, entire articles and provided information that directly competed with what The Times offered its readers.
"Perplexity provides commercial products to its own users that substitute for The Times, without permission or remuneration," the suit said.
Quote:
The Times also accused Perplexity of damaging its brand. In some cases, the suit said, Perplexity's search engine made up information what A.I. researchers call "hallucination" and falsely attributed that information to The Times.