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In Focus
Amazon is taking legal action against Perplexity AI in a bid to keep the startup from assisting users in shopping on its online marketplace, Yahoo Finance reported. Amazon acted on the legal threat to Perplexity by filing a lawsuit on November 4, 2025, in a San Francisco federal court.
Perplexity’s AI agent can help shop online on behalf of users. In its lawsuit, Amazon demands that Perplexity stop using its agentic AI tool on its platform. The e-commerce giant accuses the AI startup of violating its terms of service. It also accuses Perplexity of computer fraud for not disclosing when the Perplexity Comet AI shopping agent shops on behalf of a real person.
Amazon sent Perplexity AI a cease-and-desist letter on Friday, October 31, 2025. Sources who are familiar with the dispute said the online shopping giant accused the AI startup of degrading its customers’ shopping experience and introducing privacy vulnerabilities.
The Perplexity Comet Amazon dispute could set a precedent on how far AI agents can go in helping users and performing real tasks automatically.
Amazon is suing Perplexity AI barely a week after the AI firm signed a licensing deal with Getty images to boost image attribution.
A Perplexity spokesperson said the action “proves Amazon is a bully.” Perplexity argues that users should be allowed to choose the agent they prefer to shop on Amazon.
But when it comes to deploying AI agents, Amazon insists on transparency.
“Perplexity must be transparent when deploying its artificial intelligence. Perplexity is not allowed to go where it has been expressly told it cannot; that Perplexity’s trespass involves code rather than a lockpick makes it no less unlawful,” Amazon’s filing read.
Last month, Reddit also sued Perplexity AI for scrapping user data and using it to train its AI model.
Quick Preview of the Amazon-Perplexity Lawsuit
Amazon is building its own AI agents and has explored generative AI with new shopping and health assistants.
The company has developed Rufus, an AI assistant that browses the Amazon site, recommends products, and pushes shoppers to the cart. But it’s AI firms like Perplexity that have tested how agents can interact with the web.
“Amazon is a company that we’ve actually taken a lot of inspiration from. But I don’t think it’s customer-centric to force people to use only their assistant,” Perplexity CEO Aravind Srinivas said.
Perplexity is among AI firms that have developed AI-powered web browsers in a bid to streamline user actions, including online research and email management.