Purple Lexity, an artificial intelligence (AI) search and enhancement (RAG) startup, has introduced a subscription service called Comet Plus that directly rewards media companies when AI web browser Comet uses the article.
Comet Plus is a new program that distributes 80% of user subscription revenue to media companies. It is interpreted as a measure to respond to lawsuits surrounding the unauthorized use of articles.
According to the IT industry and foreign media on Wednesday, Purple Lexity introduced Comet Plus. Comet Plus subscribers can use articles selected by participating media outlets for a monthly fee of 5 dollars.
“AI is contributing to making the Internet better,” said Aravind Srinivas, CEO of Purple Lexity. “We believe that this model can be a solution.” Purple Lexity officially launched Comet on the 9th (local time). Comet simplifies users’ complex search operations with an interactive interface, allowing them to get the information they want without having to click on multiple apps.
Purple Lexity is offering Comet first to “Max” pricing plan ($200 per month) subscribers and some pre-applied waiters. In the future, access rights will be extended to the general public.
Purple Lexity plans to prepare a compensation pool worth $42.5 million in the initial stage and distribute it to media companies to settle the model.
The strategy is to secure financial resources through subscription fees when the Comet Plus service settles down later.
CEO Srinivas explained, “It’s a similar form to Apple News Plus.”
Through the “Publisher Program,” Purple Lexity distributed some of the advertising revenue generated by articles exposed to AI browsers to media companies. However, there was no separate revenue sharing when AI used the articles posted on the web page for analysis.
Jessica Chan, head of PurpleLexity Publishers Partnership, said, “The existing compensation system that relies on web traffic and clicks is no longer valid,” adding, “We will set a new standard.”
Bloomberg reported, “Purplexity became the first AI startup to introduce a revenue sharing model with media companies.”
The industry is paying attention to whether PurpleLexity’s profit-sharing program will change the copyright conflict between AI companies and media companies.
Purple Lexy is also facing multiple lawsuits from media outlets in various countries, including the United States and Japan.
Last year, Newscorp, which owns the Wall Street Journal parent Dow Jones and the New York Post, filed a copyright infringement lawsuit against Purple Lexiey. On May 21, U.S. Federal Court Judge Catherine Pilar rejected all applications by Purple Lexity to dismiss and transfer the lawsuit.
JENNIFERKIM
US ASIA JOURNAL
