Perplexity Drops $42.5 Million on Publishers (While Planning a $34.5 Billion Chrome Takeover)

Here’s something interesting happening in the AI world: Perplexity just launched a massive revenue-sharing program for publishers, setting aside $42.5 million to compensate media outlets whose content powers their AI search engine. This comes right as they’re making headlines with a bold $34.5 billion offer to buy Google Chrome.

What makes this particularly fascinating is that Perplexity isn’t just throwing money around randomly. They’re facing serious legal battles with major publishers like News Corp, Forbes, and Condé Nast over alleged copyright infringement. So this revenue-sharing move looks like a strategic peace offering wrapped in innovation.

How Perplexity’s Revenue Model Actually Works

The new system revolves around Comet Plus, a $5 monthly subscription tier for Perplexity’s Comet browser. Here’s where it gets interesting: publishers earn money in three distinct ways:

Direct Traffic Compensation: When users browse publisher sites through the Comet browser, publishers get paid.

Search Citation Revenue: Publishers earn when their content appears in Perplexity’s AI-generated search results.

AI Assistant Usage: This is the game-changer. When Perplexity’s AI assistant uses publisher content to complete tasks or answer questions, publishers get compensated.

Publishers keep 80% of the revenue from Comet Plus subscriptions, while Perplexity takes the remaining 20% for compute costs. According to Jessica Chan, Perplexity’s head of publisher partnerships, this could mean “millions” for participating publishers.

Why This Matters More Than You Think

Traditional search has been hemorrhaging publisher traffic thanks to AI overviews and answer engines. Studies show that Google’s AI Overviews alone have dropped organic click-through rates from 4% to 0.6%. Some publishers have seen 10-25% traffic drops, with lifestyle and niche content hit particularly hard.

Chan makes a crucial point: the old model where publishers rely purely on web traffic and clicks is outdated. Users now consume information in three ways: browsing manually, asking for AI-generated answers, or deploying AI agents for complex tasks. Publishers deserve compensation that matches this new reality.

While Perplexity positions this as innovative partnership, the timing reveals the pressure they’re under. News Corp’s lawsuit specifically alleges “massive illegal copying” and accuses Perplexity of letting users “Skip the Links” to bypass publisher websites entirely.

The company just lost a bid to dismiss or transfer the News Corp case, with the court rejecting their arguments. Forbes and Condé Nast have also threatened legal action, while Cloudflare accused Perplexity of circumventing website protection blocks.

Perplexity’s confident response? They believe “AI companies will win all of these lawsuits”. But their actions suggest they’re hedging their bets with this revenue-sharing program.

The $34.5 Billion Chrome Gambit

Here’s where things get really wild: Perplexity, valued at $18 billion, just offered $34.5 billion to buy Google Chrome. The math doesn’t add up until you consider their strategic positioning.

With over 3 billion Chrome users, acquiring the browser would give Perplexity massive scale to compete with Google and OpenAI. CEO Aravind Srinivas told Bloomberg that “multiple large investment funds have agreed to finance the transaction in full”.

The timing isn’t coincidental. This comes as Google faces antitrust pressure that could force them to sell Chrome. Even if Google isn’t selling, the bid generates massive PR for Perplexity while positioning them as a serious Google competitor.

What This Means for Publishers

The revenue-sharing model represents a fundamental shift in how AI companies approach content relationships. Unlike OpenAI and Google, which negotiate individual licensing deals worth millions with major publishers, Perplexity’s program is usage-based and open to a broader range of publishers.

Early participants in Perplexity’s publisher program include Time, Fortune, The Los Angeles Times, Der Spiegel, and WordPress.com. The company plans to announce additional partners when Comet becomes widely available.

For publishers struggling with AI-driven traffic losses, this model offers a potential lifeline. Instead of fighting AI adoption, they can participate in the revenue it generates from their content.

The Broader AI Search Revolution

Perplexity isn’t alone in reshaping search. OpenAI launched ChatGPT search in October 2024, offering real-time web results with source citations. The competition is heating up as traditional search evolves toward conversational AI interfaces.

The key difference? Perplexity is the first major AI company to create a comprehensive revenue-sharing model that accounts for different types of AI-driven content usage. This could become the template other AI companies adopt to avoid publisher lawsuits.

What Publishers Should Consider

If you’re a publisher, here’s what this development means for your strategy:

Diversify Revenue Streams: Don’t rely solely on traditional search traffic. AI-powered platforms might offer new monetization opportunities.

Understand Usage Patterns: The three-tier compensation model (direct traffic, search citations, AI assistant usage) reflects how users actually consume content in the AI era.

Evaluate Partnership Opportunities: Publishers interested in Perplexity’s program can reach out via publishers@perplexity.ai.

Prepare for Change: Whether Perplexity succeeds or fails, the publisher-AI relationship is evolving rapidly. Early adoption of new models could provide competitive advantages.

The Bigger Picture

Perplexity’s dual strategy—compensating publishers while bidding for Chrome—reveals their understanding of the AI search landscape. They need both quality content and massive distribution to compete with Google’s dominance.

The $42.5 million revenue pool is just the starting point. Perplexity expects this fund to grow as Comet Plus subscriptions increase. If successful, this model could pressure other AI companies to adopt similar publisher compensation schemes.

The real test isn’t whether Perplexity’s Chrome bid succeeds (it probably won’t), but whether their revenue-sharing model creates a sustainable partnership between AI companies and content creators.

For publishers facing declining search traffic, Perplexity’s approach offers something traditional search never could: direct compensation for content usage, regardless of whether users click through to your site. That alone makes this worth watching closely.

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