Perplexity vs Amazon: The AI Feud Explained

The battle between platform control and open innovation

The ongoing feud between Perplexity AI and Amazon has become a defining moment in the debate over innovation, control, and the future of AI agents. What began as a legal notice over data access and automation tools has evolved into a broader conversation about user rights, open technology, and whether big platforms are helping or hindering progress.

The Stakes

Perplexity has fired back at Amazon’s legal notice over its AI browser-agent tool Comet, which can make purchases on Amazon’s platform on behalf of users. Amazon argues that the tool violates its terms of service, undermines its platform integrity, and intrudes into its ecosystem without permission. Perplexity counters that Amazon is attempting to use its dominance to stifle innovation and restrict user choice.

What Amazon Says

Amazon’s cease-and-desist letter alleged that Comet performs transactional operations on its site without explicit authorization. The company insists that such AI tools threaten the consistency of its user experience and the trust it has built with merchants. Amazon’s position is that automation on its platform must follow its own API and policy guidelines to ensure security and transparency.

What Perplexity Says

Perplexity, on the other hand, calls Amazon’s move “bullying.” It argues that Comet acts as an agent for the user, not Perplexity itself. The credentials stay on the user’s device, and actions are taken only at the user’s request. The startup says Amazon should remember how it grew, by building on open data and developer access, and shouldn’t now block innovation for others.

Why It Matters

The outcome of this dispute could define how AI assistants interact with dominant digital platforms. It raises questions about user agency, fair use, and the openness of the web. Should users be able to choose any AI tool to act on their behalf, or should platforms have the final say over who gets access?

For Amazon, it’s about control and security. For Perplexity, it’s about user freedom and the future of agentic AI. For users, it’s a debate about whether technology serves people or the platforms.

What Comes Next

We may see new agreements or regulations defining how AI agents can operate across platforms. If this turns into a legal battle, it could set a precedent for the entire AI ecosystem, impacting how startups and major tech companies collaborate or compete.

Whatever the outcome, the case underscores a fundamental tension: innovation versus control. And how we resolve it will shape the next decade of AI evolution.