Amazon vs Perplexity AI over Comet
Analysis based on 6 articles · First reported Nov 04, 2025 · Last updated Nov 08, 2025
The dispute between Amazon (company) and Perplexity AI highlights growing tensions in the AI market, potentially impacting the stock prices of Amazon (company) due to concerns over its advertising revenue and market dominance. For Perplexity AI, this legal challenge could affect its valuation and ability to operate its AI agents, signaling a shift towards more controlled digital ecosystems.
Amazon (company) has issued a cease-and-desist letter to Perplexity AI, demanding that its AI browser agent, Comet, cease making purchases on Amazon (company) on behalf of users. Amazon (company) accuses Perplexity AI of computer fraud and violating its terms of service by failing to disclose the AI agent's identity, claiming it degrades the shopping experience and creates privacy vulnerabilities. Amazon (company) had previously warned Perplexity AI in November 2024 to stop this practice, which Perplexity AI initially honored, but Amazon (company) alleges Comet resumed operations in August 2025 by masquerading as a Google Chrome browser and circumventing blocks. Perplexity AI, valued at $20 billion and backed by Jeff Bezos, denies wrongdoing, accusing Amazon (company) of anti-competitive behavior aimed at protecting its advertising business. Perplexity AI argues that its agent acts on user behalf with the same permissions as a human and does not scrape Amazon (company) data. This dispute underscores the broader challenges and 'turf war' in the AI space regarding autonomous AI agents and access to online platforms, with other entities like OpenAI, Alphabet Inc.'s Google, Meta Platforms, Cloudflare, and Meta Platforms — WhatsApp also involved in similar discussions or actions regarding AI agent access and data usage.
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