The battle between Amazon (AMZN) and AI startup Perplexity (PC:PERPL) is heating up. Perplexity is now pushing back after Amazon accused the AI startup of misusing its technology to make online purchases, calling the e-commerce giant’s legal threats “an attempt to stifle innovation.”
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On the social platform X, Perplexity CEO Aravind Srinivas stated, “We would be happy to work with Amazon to find a win-win solution. But if they try to block our Comet Assistant and harm our users, we will stand up for them and won’t be bullied by Amazon.”
Amazon Targets Perplexity
Amazon claims Perplexity’s AI browser agent, Comet, illegally made purchases on users’ behalf, violating Amazon’s terms of service. Notably, Amazon sent a cease-and-desist letter to Perplexity, asking the company to remove its AI shopping tool, Comet, from its platform.
For context, a cease-and-desist letter is a formal legal notice, often the first legal warning before a lawsuit.
Perplexity Hits Back
In response, Perplexity hit back, accusing Amazon of “bullying” and defending its own actions. The startup argues that its Comet AI browser is designed to empower shoppers and make online buying easier.
The startup added that Amazon’s stance contradicts its own public support for AI collaboration. Perplexity pointed to remarks by Amazon CEO Andy Jassy during a recent earnings call, noting that he had expressed openness to working with “third-party agents” in the future.
Further defending its stance, Amazon stated that any third-party app making purchases on its platform must comply with its policies and respect its decision to opt out. The company argued that Perplexity’s Comet browser delivers a “significantly degraded shopping and customer service experience” compared to Amazon’s own interface.
What Is the Price Target for AMZN Stock?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 42 Buys assigned in the last three months. At $295.35, the Amazon average share price target implies an upside of 18.5% from the current level.
