Perplexity, the AI-powered search engine, has expanded its publisher program, adding 15 new news outlets, including the LA Times, Adweek, and Mexico News Daily. The program allows publishers to share in revenue generated by ads on Perplexity and receive metrics to track their content's performance. However, the move has raised concerns among some publishers, who are unclear about the terms of the partnership and the company's use of their content.

Jessica Chan, head of publisher partnerships at Perplexity, emphasized the importance of news organizations in providing factual and valuable answers, saying, "We're excited to welcome these new publishers to the program." The new additions include Spanish-language media brand Pris Media, newspaper conglomerate Lee Enterprises, and The Independent, among others.

However, some publishers have expressed concerns about the lack of transparency in the partnership. A source at the LA Times told TechCrunch that reporters were not informed about the deal, and the editorial department was not given an opportunity to voice its opinions to leadership. Similarly, a source at Adweek said some staff members were not informed or given a say in the partnership.

The controversy surrounding Perplexity's use of publisher content is not new. The company has faced criticism for its data-gathering tactics and the way it presents summarized content. In October, The New York Times sent Perplexity a cease and desist letter demanding the startup stop accessing its articles without permission. Dow Jones, which runs the Wall Street Journal and other newswire services, and The NY Post are also suing Perplexity over what they describe as a "content kleptocracy."

Perplexity's search engine uses AI to synthesize and summarize content from around the web, but the company's citations have been found to be sometimes erroneous. Additionally, Forbes accused Perplexity of plagiarizing its paywalled content, and Wired published a piece that found Perplexity's platform was paraphrasing its own stories, sometimes inaccurately.

In response to Dow Jones' lawsuit, Perplexity argued that publishers wished its tech "didn't exist" and that they would prefer "publicly reported facts are owned by corporations." However, the company has not addressed concerns about its massive scale of content regurgitation and competition with publishers for the same audience.

Perplexity's revenue sharing terms with publishers remain unclear, with the company refusing to disclose financial specifics. This lack of transparency has raised concerns among publishers, who may use the terms as leverage in negotiations with competitors. OpenAI's rival AI-powered search tool, ChatGPT Search, allows publishers to manage how their content appears in search results, a feature Perplexity has promised but not yet delivered.

As Perplexity's program expands, the startup may face greater pressure from investors to recoup costs. Perplexity is reportedly raising $500 million in a deal that would value it at $9 billion, but its annual recurring revenue was just about $50 million as of October. Despite the challenges, Perplexity co-founder and CEO Aravind Srinivas appears optimistic, stating that the company is now serving around 20 million queries a day, up from 2.5 million a day at the beginning of the year.

The expansion of Perplexity's publisher program raises important questions about the future of content creation and distribution in the age of AI-powered search engines. As the company continues to grow, it will be crucial for Perplexity to address the concerns of publishers and establish a more transparent and equitable partnership model.