Amazon has issued a cease-and-desist letter to the artificial intelligence startup Perplexity AI, demanding it stop its AI browser agent, named Comet, from making purchases on the e-commerce platform. The conflict highlights a growing tension between established tech giants and emerging AI companies over the future of online interaction and commerce.
The core of the dispute centers on Amazon's accusation that Perplexity is violating its terms of service by using an automated agent to shop on behalf of users without proper disclosure. Perplexity has countered, describing Amazon's actions as a tactic to stifle competition from a smaller, innovative rival.
Key Takeaways
- Amazon sent a cease-and-desist letter to Perplexity AI over its shopping agent, Comet.
- Amazon alleges the tool violates its terms of service and constitutes computer fraud.
- Perplexity claims Amazon is engaging in anti-competitive behavior to protect its own AI shopping tools.
- The conflict raises questions about the rights of AI agents acting on behalf of human users.
A Dispute Over Automated Shopping
Amazon's legal action claims that Perplexity's AI agent operates in a way that is not transparent, effectively masking its identity as an automated tool. According to sources familiar with the letter, Amazon believes this practice degrades the user experience, introduces potential privacy issues, and is a direct violation of its conditions of use, which prohibit the use of "robots, or similar data gathering and extraction tools."
This is not the first time the two companies have clashed over this issue. In November 2024, Amazon reportedly asked Perplexity to stop deploying purchasing agents on its site, a request the startup initially complied with. However, by August of this year, Perplexity launched its new Comet agent, which logs into a user's Amazon account to complete transactions.
The Rise of AI Agents
So-called AI agents are advanced programs designed to perform complex, multi-step tasks for users. Beyond simple search queries, they can book flights, manage calendars, and, in this case, shop online. Companies from Google to OpenAI are investing heavily in this technology, viewing it as the next evolution of the web browser and personal assistant.
Amazon further alleges that Perplexity attempted to circumvent its security measures. The letter stated that the Comet agent initially identified itself as a standard Google Chrome browser user. After Amazon moved to block the tool, Perplexity allegedly released an updated version to bypass the block, escalating the technical cat-and-mouse game between the two firms.
Competing Visions for AI Commerce
Perplexity has publicly pushed back against Amazon's demands. In a company blog post, the startup framed the issue as a matter of user choice and fair competition. "It’s a bully tactic to scare disruptive companies like Perplexity out of making life better for people," the company wrote, arguing that users should be free to select their preferred AI assistant for online tasks.
Aravind Srinivas, the CEO of Perplexity, elaborated on this position in an interview. "I don’t think it’s customer centric to force people to use only their assistant, which may not even be the best shopping assistant," he stated. Srinivas argued that an AI agent, when authorized by a user, should possess the same rights and responsibilities as the person it represents. "It’s not Amazon’s job to survey that," he added.
Perplexity's Valuation: The AI search startup is now valued at approximately $20 billion, making it one of the most prominent new players in the artificial intelligence space.
The conflict is complicated by the fact that Amazon is developing its own suite of AI shopping tools. The company is testing a feature called "Buy For Me" that allows users to purchase items from other brand websites through the Amazon app. It also has "Rufus," an AI assistant that helps users browse products and add them to their cart on Amazon's own site.
The Advertising Angle
A significant undercurrent in this dispute is the potential threat AI agents pose to Amazon's highly profitable advertising business. A large portion of Amazon's revenue comes from companies paying for premium placement in search results. If users increasingly rely on AI agents to find and purchase the best product directly, the value of that sponsored placement could diminish significantly.
In its blog post, Perplexity accused Amazon of attempting to "eliminate user rights" in order to protect its advertising model.
A Complex Business Relationship
The corporate relationship between the two companies adds another layer of complexity. Perplexity is a major customer of Amazon Web Services (AWS), the company's cloud computing division. According to Srinivas, Perplexity has committed "hundreds of millions" of dollars to using AWS infrastructure. In the past, AWS has even featured Perplexity as a key AI partner, with Srinivas appearing on stage at an AWS conference in 2023.
Furthermore, Amazon founder Jeff Bezos is an investor in Perplexity through his personal investment firm.
"We think it’s fairly straightforward that third-party applications that offer to make purchases on behalf of customers from other businesses should operate openly and respect service provider decisions whether or not to participate," said Lara Hendrickson, an Amazon spokesperson.
Amazon's CEO, Andy Jassy, recently commented on the state of AI shopping agents during an earnings call. He suggested the current user experience was "not good," citing issues with personalization and accuracy. However, he did not rule out future collaboration, stating, "I do think we will find ways to partner," and mentioned that Amazon was in "conversations" with developers of third-party agents.
This legal and technical battle between Amazon and Perplexity serves as an early, high-stakes test case for how the internet will accommodate a new generation of autonomous AI agents, and who will set the rules for their operation.