In a groundbreaking move that could reshape the digital media landscape, AI startup Perplexity is introducing a novel revenue-sharing model for publishers impacted by artificial intelligence technologies. The company has allocated $42.5 million to compensate media outlets whose content is utilized within their AI search platform.

Perplexity’s approach aims to address growing tensions between AI companies and publishers who have long argued that AI tools extract value from their content without adequate compensation. Under the new program, publishers will earn revenue when their content appears in search queries, receives web traffic through Perplexity’s Comet browser, or is used by the AI assistant to complete user tasks.

The compensation mechanism will be funded through Comet Plus, a $5 monthly subscription service offering curated content. Publishers stand to receive 80% of the subscription revenue, marking a significant departure from traditional web traffic monetization models.

CEO Aravind Srinivas emphasized the company’s commitment to creating a more equitable digital ecosystem, stating, “AI is helping to create a better internet, but publishers still need to get paid”. This stance comes amid ongoing legal challenges, including copyright infringement lawsuits from media organizations like Dow Jones and the New York Post.

The initiative highlights the complex relationship between AI technologies and content creators. While some AI companies have negotiated individual licensing deals with major publishers, Perplexity’s approach represents a more systematic attempt to address industry-wide concerns.

Jessica Chan, head of publisher partnerships, described the program as establishing “a new standard for compensation,” acknowledging the evolving digital media landscape. The company has previously collaborated with outlets like Time, the Los Angeles Times, and Fortune on revenue-sharing initiatives.

As the AI industry continues to grow and transform media consumption, Perplexity’s revenue-sharing model could potentially set a precedent for how technology companies interact with content creators in the future.

The startup, which recently raised $100 million and achieved an $18 billion valuation, seems poised to challenge existing norms in search and content distribution. Whether other AI companies will follow suit remains to be seen.