New York Times Sues Perplexity AI Over Alleged Mass Content Theft and AI 'Hallucinations'

The New York Times has filed a lawsuit against Perplexity AI, accusing the company of copying and distributing millions of its articles without permission to train its generative AI products. The allegations include scraping paywalled content and generating fabricated information, or 'hallucinations,' that was presented as Times reporting. According to the lawsuit, Perplexity AI's tools relied on copied content, including paywalled material, to power its products. The company allegedly displayed this content alongside the New York Times' registered trademarks, sparking concerns over the misuse of copyrighted material. The New York Times is seeking damages, an injunction, and other remedies to stop Perplexity AI's alleged misuse. The lawsuit follows a cease-and-desist notice sent by the Times over a year ago and adds to the ongoing conflict between publishers and tech firms over unauthorized use of copyrighted material. This is not the first lawsuit filed against Perplexity AI. The company is also facing disputes with the Chicago Tribune, Reddit, Encyclopedia Britannica, Dow Jones, and the New York Post, among others. The lawsuit highlights the growing tensions between publishers and tech firms over data scraping and the use of copyrighted material in AI development.