The Perplexity AI drama explained in 60 seconds

• Forbes accused the AI startup Perplexity of "ripping off" its work without sufficient attribution.
• Wired then said Perplexity was probably using a "secret IP address" to access content not intended for AI.

If you follow AI news, there's a decent chance you've seen Perplexity taking some heat on social media in recent weeks.

The AI search engine, which can scan the internet in real time to provide answers, is valued at more than $1 billion and has received funding from Jeff Bezos and Nvidia.

Now, it's facing allegations of ripping off publishers' work without proper attribution.

So what happened?

Forbes calls out Perplexity

On June 6, Forbes released an investigative article on former Google CEO Eric Schmidt's AI-drone startup. The next day, Perplexity published an AI-generated webpage about the story using its new "Perplexity Pages" feature and sent it to its subscribers.

John Paczkowski, an executive editor at Forbes, called Perplexity out on X, saying, "It rips off most of our reporting. It cites us, and a few that reblogged us, as sources in the most easily ignored way possible."

Perplexity's AI-generated webpage didn't prominently cite Forbes, Paczkowski said, and elevated other news coverage of the story in its citations — including an article from Business Insider about the Forbes piece — over Forbes' original reporting.

Perplexity CEO Aravind Srinivas thanked Paczkowski for flagging the issue and said the product "has rough edges," agreeing that sources should be more easily found and visibly highlighted.

Perplexity then updated the AI-generated webpage to more prominently cite Forbes' work, but an AI-generated Perplexity podcast about the topic still doesn't mention Forbes in the audio.

Forbes later released a statement accusing Perplexity of "ripping off" multiple articles from various publications, including CNBC and Bloomberg.

Perplexity's CEO told the Associated Press that the company "never ripped off content from anybody" and that "we are actually more of an aggregator of information."

Forbes threatens legal action

Forbes sent a letter to Perplexity's CEO demanding that the startup make changes to its AI-generated article citations and reimburse Forbes for any advertising revenue it generated from the Perplexity Pages based on Forbes' reporting, Axios reported.

Forbes said it "looks forward to a reply" within 10 days and threatened to reserve "all of its rights to take any action it deems necessary to protect its rights," according to Axios.

Wired investigates Perplexity's web crawling

On Wednesday, Wired published an investigation into Perplexity that found its AI was "paraphrasing WIRED stories, and at times summarizing stories inaccurately and with minimal attribution."

Wired also said Perplexity was probably bypassing publishers who indicated via their website code that AI web scraping was off-limits. Wired said it discovered a "secret IP address" scraping the content in question that was "almost certainly linked" to Perplexity.

Srinivas responded to Wired's request for comment with a statement that said, "The questions from WIRED reflect a deep and fundamental misunderstanding of how Perplexity and the Internet work."

A spokesperson for Perplexity didn't immediately respond to a request for comment from Business Insider ahead of publication.