Business

The government’s National Wealth Fund (NWF) has pledged up to £200 million to support new battery storage projects across Britain, as part of a £500 million investment package designed to strengthen the country’s clean energy infrastructure.

The deal sees the NWF co-invest with Australian pension fund Aware Super and infrastructure investor Equitix in Eelpower, a specialist battery developer. Construction of three new storage projects will begin immediately, with several more expected to receive the green light later this year.

The NWF said its decision was driven by the urgent need for more grid-scale storage to manage growing renewable output. The UK’s power system regularly pays wind farms to switch off because the network cannot handle excess supply – a practice known as curtailment – costing consumers hundreds of millions of pounds each year.

“Batteries are a priority area for the NWF,” a spokesperson said. “They provide the flexibility and security required to balance the grid as we transition to clean energy.”

The government has set a target of installing up to 27GW of battery capacity by 2030, a sixfold increase from the current 4.5GW. The investment in Eelpower is intended to deliver at least 1GW.

However, the move has raised eyebrows among some industry figures, who argue there is already strong private appetite for battery projects. One senior developer told The Times: “It is a little surprising. There is no shortage of equity and debt investors in the sector.”

Analysis by Cornwall Insight suggests as much as 61GW of battery storage is already in the pipeline, seeking grid connections by 2030 – more than double the government’s target.

The sector has nevertheless faced headwinds. Revenues have proved volatile, in part because the National Energy System Operator (Neso) has selected fewer batteries than expected to provide balancing services. Battery funds have also struggled in public markets, with listed trusts trading at steep discounts to their net asset values. Harmony Energy Income Trust agreed a takeover earlier this year, citing limited ability to raise fresh capital.

Adam Bell, director of policy at consultancy Stonehaven, said the sector was facing a “short-term crunch on access to equity” as Neso worked to resolve operational challenges.

Backed by up to £27.8 billion of government funding, the NWF has a mandate to step in where private finance is lacking and to catalyse investment in strategic sectors.

An NWF spokeswoman said: “Our view is that the debt market is in good shape in this sector, but we have seen the equity market struggling, with a number of existing investors looking to exit or de-risk their equity stakes and not enough new money coming in.

“We bring scale and presence to ensure projects can continue to develop at the pace required to meet government targets, whilst also giving confidence to the market.”

Despite criticism, the fund argues its intervention will ensure the UK’s battery roll-out keeps pace with its wider ambition to decarbonise the power system by 2030.

Read more:
National Wealth Fund commits £200m to UK battery storage push

Debenhams Group is considering the sale of Pretty Little Thing as part of a wider restructuring effort aimed at stabilising the struggling fashion retailer.

Chief executive Dan Finley, who took charge last November after the resignation of John Lyttle, said he would leave “no stone unturned” in attempts to turn around the group, which rebranded from Boohoo earlier this year.

The company said on Tuesday it had already achieved around £50 million in annualised cost savings since Finley’s arrival, including a 30 per cent reduction in headcount. Alongside a potential disposal of Pretty Little Thing, Debenhams is also “assessing long-term options” for distribution centres in the US and Burnley, Lancashire.

The group’s full-year results underline the scale of the challenge. For the 12 months to 28 February, adjusted ebitda rose 3 per cent to £41.6 million, but revenue slipped 12 per cent to £790.3 million, pushing the business into an operating loss of £42.6 million.

All of Debenhams’ brands – which also include Karen Millen, Nasty Gal and Dorothy Perkins – are currently trading profitably on an adjusted ebitda basis, and the group said it expects earnings for continuing operations to improve in the first half of 2026.

Shares in Debenhams ended flat on Tuesday at 14½p.

The latest moves come against a backdrop of tension with Debenhams’ biggest shareholder, Mike Ashley’s Frasers Group, which has repeatedly attacked the retailer’s financial performance as a “catastrophe”.

Finley’s appointment as chief executive last year was seen as a rebuff to Ashley, who had reportedly wanted the role himself. Within weeks of taking the helm, Finley had to fend off an attempted boardroom coup from the tycoon.

Founded in 2006 by Mahmud Kamani and Carol Kane, Boohoo acquired Debenhams out of administration in 2021 for £55 million, turning the 247-year-old high street chain into an online-only business. In March 2025, Finley rebranded the group under the Debenhams name, declaring: “Debenhams is back.”

The company has also strengthened its balance sheet, completing a new debt financing package worth up to £175 million in August, replacing an existing £125 million facility, and cutting its debt pile by £15 million to £78.2 million.

For Finley, the decision over Pretty Little Thing will be a key test of whether his turnaround strategy can deliver lasting change for one of Britain’s most scrutinised retail groups.

Read more:
Debenhams considers sale of Pretty Little Thing in bid to accelerate turnaround

UK businesses spent as much as £65 million last year on licences to export food and agricultural products to the EU – costs the government has pledged to eliminate within the next 18 months.

Figures published by the Department for Environment, Food and Rural Affairs on Tuesday showed 328,727 export licences were issued in 2024, each costing between £113 and £200. That equates to a total burden of between £37 million and £65 million for British firms.

The Cabinet Office minister for European negotiations, Nick Thomas-Symonds, will set out plans on Wednesday to remove the scheme entirely as part of a new agricultural and food products agreement with Brussels, to be finalised by 2027.

Speaking at an event hosted by The Spectator and chaired by senior Brexiteer Michael Gove, Thomas-Symonds will argue that closer alignment with the EU is now firmly in the national interest.

He is expected to launch a direct attack on Reform UK leader Nigel Farage, saying: “Nigel Farage’s manifesto at the next election will say in writing he wants to take Britain backwards, cutting at least £9bn from the economy, bringing with it a risk to jobs and a risk of food prices going up. Nigel Farage wants Britain to fail. His model of politics feeds on it, offering the easy answers, dividing communities and stoking anger.”

Labour’s pro-EU positioning contrasts sharply with the approach of the Conservatives and Reform UK. Tory leader Kemi Badenoch has accused the government of “being dragged back” into the EU, while Farage has labelled the policy a “Brexit betrayal”.

The DEFRA report accompanying the figures said the costs of export licences had hit smaller businesses particularly hard.

“These firms often lack the capacity and economies of scale to manage the administrative and compliance demands associated with non-tariff measures,” the report said. “This has created a competitive disadvantage between smaller firms and larger operators with in-house capability – although all stakeholders report increased costs.”

The current system, introduced under the Conservative government’s post-Brexit trade deal, requires exporters of products such as meat, fish, fruit and vegetables to secure licences to access the EU market.

Labour says its new deal will reduce border checks and eliminate the need for such licences, cutting red tape for exporters.

In April, British supermarkets and food producers, including Marks & Spencer and Sainsbury’s, urged Brussels to complete negotiations on the new goods and agriculture agreement, warning that the current system had imposed “unnecessary red tape” and damaged competitiveness.

A Labour spokesperson added: “The Tory Brexit deal was a complete failure, saddling businesses with costs they shouldn’t have had to face and harming our economy in the process. But Nigel Farage and Kemi Badenoch have both committed to ripping up Labour’s agreement and keeping this damaging red tape in place.”

For now, Britain’s food exporters face at least another year of paperwork and added expense. But ministers insist that a new deal with Brussels by 2027 will finally remove one of the most costly non-tariff barriers created by Brexit.

Read more:
UK firms spent up to £65m on post-Brexit food export licences last year as Labour pledges to scrap scheme

Tom Hartley Jnr has announced the successful sale of the extraordinary Mansour Ojjeh McLaren collection, one of the most significant supercar ensembles ever assembled.

The collection of 20 McLarens, curated by the late Mansour Ojjeh – the influential shareholder and driving force behind McLaren’s success on and off the track – is considered unrepeatable. Each car represents the final chassis of its respective model, with almost all in unused, factory-fresh condition.

At its heart lies the last McLaren F1 ever built, specified by Ojjeh in a bespoke shade of ‘Yquem’, which went on to become renowned as ‘Mansour Orange’. Alongside it sit icons of McLaren’s modern era, including the P1 GTR, Speedtail, multiple Senna variants, the Sabre and the Elva, making the collection the most complete of its kind.

The collection has been sold in its entirety to a single, undisclosed buyer, despite world-record offers being made for the McLaren F1 alone. Both the Ojjeh family and Hartley were determined that the cars should remain together as a historic whole, in recognition of their provenance and Ojjeh’s vision.

“To have been entrusted with the sale of this extraordinary collection by the Ojjeh family has been a true privilege,” said Tom Hartley Jnr. “This is not just a sale – it is the respectful transfer of a legacy. The Mansour Ojjeh collection represents the very best of what McLaren stands for – innovation, individuality, quality and excellence.”

The sale follows Hartley’s handling of another landmark private transaction earlier this year: Bernie Ecclestone’s collection of 69 historic Formula 1 cars, sold to Mark Mateschitz, son of Red Bull founder Dietrich Mateschitz, in a deal reportedly worth £500 million.

Born in Paris in 1952, Ojjeh became synonymous with McLaren after TAG – his family’s holding company – financed the TAG-Porsche turbo engines that powered McLaren to multiple titles in the 1980s. Over four decades, he helped steer McLaren to seven Constructors’ and ten Drivers’ Championships, while also playing a pivotal role in the creation of McLaren Automotive.

Ojjeh’s passion for cars went beyond ownership. He was instrumental in the birth of the McLaren F1 road car, agreeing its development in a chance conversation with Ron Dennis and Gordon Murray in 1988. Today, the F1 is widely regarded as one of the greatest cars ever built.

His passing in 2021 was marked by tributes from across motorsport and business, recognising not just his influence and acumen but his humility and generosity.

With more than 25 years at the top end of the collector car market, Tom Hartley Jnr has built a reputation as one of the most trusted brokers of significant private sales worldwide. His company, which handled more than $400 million of collectible car transactions in 2024, was recognised with the Queen’s Award for International Trade in 2018.

Read more:
Tom Hartley Jnr completes sale of Mansour Ojjeh’s extraordinary McLaren collection

The Trump administration has confirmed that it is reviewing the records of more than 55 million US visa holders in what amounts to one of the most extensive immigration crackdowns in modern American history.

In a move first reported by the Associated Press, the State Department said that every foreign national currently holding a valid US visa will be subject to “continuous vetting” for potential ineligibility, including those already living in the country. If violations are uncovered, visas will be revoked and, if the individual is in the United States, they may face deportation.

A State Department spokesperson said: “The State Department revokes visas any time there are indications of a potential ineligibility, which includes things like any indicators of overstays, criminal activity, threats to public safety, engaging in any form of terrorist activity, or providing support to a terrorist organization.”

The announcement follows the administration’s decision earlier this week to incorporate checks for “anti-American” views, including on social media, into visa assessments.

US Citizenship and Immigration Services (USCIS) said it is expanding its reviews of online activity for all applicants seeking to live, work or study in the US. “Reviews for anti-American activity will be added to that vetting,” a USCIS spokesperson confirmed.

“America’s benefits should not be given to those who despise the country and promote anti-American ideologies,” said Matthew Tragesser of USCIS. “Immigration benefits – including to live and work in the United States – remain a privilege, not a right.”

The Trump administration has also directed immigration authorities to consider whether applicants “promote antisemitic ideologies”, linking the measure to concerns about campus protests over Israel’s war in Gaza. Officials have accused students and universities of antisemitism and of providing support for terrorism – allegations that protesters strongly deny.

In April, the administration revoked or changed the legal status of hundreds of international students, only to reinstate them several weeks later. In May, student visa interviews were temporarily halted, before new social media vetting requirements were introduced in June.

Under the new rules, student applicants must provide access to their social media profiles, enabling US diplomats to review online content before granting educational or exchange visas. Refusal to comply is treated as grounds for suspicion.

Since Secretary of State Marco Rubio took office in January, the department says it has revoked 6,000 student visas. The majority – around 4,000 cases – were removed due to criminal offences including assault, burglary and driving under the influence, while others were linked to alleged “support for terrorism”.

With more than 55 million people now under review, the expansion marks a dramatic escalation of the administration’s immigration policies, heightening tensions with universities, businesses and foreign governments already unsettled by the White House’s hardline stance.

Read more:
Trump administration to review 55m US visa holders in sweeping immigration crackdown

HMRC’s use of artificial intelligence to profile people’s social media activity will increase tax compliance, according to leading audit, tax and business advisory firm Blick Rothenberg.

Fiona Fernie, a partner at the firm, said that HMRC’s CONNECT system has been deploying advanced analytics since the early 2000s to spot underpaid tax. “CONNECT uses (and has always used) advanced analytics such as pattern recognition, predictive modelling, and machine learning, which are all forms of AI. Social media is just one of the many sources CONNECT reviews,” she explained.

CONNECT, developed by BAE Systems Applied Intelligence at an estimated cost of between £45 million and £100 million, has reportedly helped recover more than £3 billion in unpaid tax.

Fernie highlighted the efficiency gains such technology offers HMRC investigators. “CONNECT can identify the patterns and anomalies in the data it reviews in seconds where human investigation would take months,” she said. “It not only enables real-time risk profiling; it also supports the work carried out by HMRC staff during the course of investigations.”

However, she stressed that AI outputs are not used in isolation. “The information gleaned and analysed by the CONNECT system is always also looked at by human investigators. As long as there is appropriate human oversight and safeguards, I do not see any problem with the use of AI to identify possible indicators that tax is not being paid at the correct levels.”

HMRC has recently confirmed it uses publicly available online data to support compliance activities, including social media posts, blogs and other internet content without privacy restrictions. This mirrors the approach of other government departments such as the Department for Work and Pensions.

Fernie suggested HMRC may be underplaying the extent of its AI usage. “It is strange for HMRC to state that AI is only used as part of criminal investigations into tax fraud, as CONNECT uses real-time risk profiling as a tool to help determine targets for investigation.”

The growing use of AI in tax enforcement comes as governments worldwide deploy technology to close compliance gaps and secure revenues — a trend that places increasing importance on digital footprints, even in everyday online activity.

Read more:
AI profiling of social media will boost HMRC’s tax compliance, say advisers

Corporations are spending big on AI. According to IDC, total business investments in generative AI are expected to increase 94% this year to reach $61.9 billion. However, just investing in AI does not guarantee a payoff.

In fact, as Laura Clayton McDonnell, President of Corporates at Thomson Reuters explains, new research from McKinsey finds that the vast majority of companies implementing AI have seen no significant bottom-line impact from the technology. These findings are echoed in our Future of the Professionals Report 2025, which found that although 71% of C-suite leaders say their company has invested in AI tools in the past year, and a further 18% plan to invest in AI within the next 12 months, just 19% of corporate professionals say their department has a clearly-defined AI strategy in place.

As investment in AI increases, it becomes ever more important for businesses to develop an AI strategy to maximize the value of their AI investments. A solid AI strategy will define the investment, training, and guardrails necessary for departments to effectively utilize the technology. An excellent AI strategy can drive top-line growth for companies. However, this growth will never occur without a clear plan.

Based on our experience at Thomson Reuters helping large corporations integrate AI into their tax, legal, risk, compliance, and HR workflows, we’ve seen what can happen when businesses have a clear strategy in place and how expectations can be missed without a plan. We recommend that organizations follow seven key principles to maximize the effectiveness of new AI tools they adopt. These principles emphasize the necessary steps—from developing protocols to training employees—that are essential for achieving your business’s core objectives.

The seven key principles for a successful AI strategy

Align your AI strategy with your firm’s overall strategy

AI initiatives must directly support the core objectives of in-house departments and complement their organization’s overarching AI strategy. This includes reducing legal and regulatory risk exposure, improving compliance, streamlining procurement, and speeding up contract review. Leaders should also consider how to reinvest the new time savings into handling a greater volume of value-added work.

Corporate leaders should consider where they want their in-house functions to be in a year. They should begin by identifying the obstacles that are now blocking their departments’ strategic progress.

Establish clear AI goals and objectives

Leaders should convert broad company goals into specific, measurable, achievable, relevant, and time-bound (SMART) AI objectives. For example, if a departmental goal is to improve regulatory compliance monitoring, a good AI objective could be to boost department efficiency in handling particularly tedious manual tasks, like drafting updated contracts or researching local tax laws. Additionally, leaders should encourage input from different departments on how AI can support these goals. They should also promote early experimentation with AI tools across legal, tax, and compliance teams.

Corporate leaders should identify and prioritize an AI goal that tackles the departments’ most urgent issues, developing relevant initiatives to achieve realistic objectives.

Create a data strategy

Remember that AI’s effectiveness depends on the data it is trained on or references. Leaders should ensure their departments develop strong strategies for managing, securing, and utilizing data for AI purposes—while upholding confidentiality and legal privileges.

Leaders should work with internal teams and external resources to establish the best data strategy for their organization, considering factors like company size, industry, structure, and best practices.

Establish strong governance & ethical frameworks

It’s essential to establish clear policies on data privacy, security, and responsible AI use. This involves creating processes for identifying bias and ensuring accuracy. When verifying GenAI outputs, it is important to clearly define policies related to confidentiality, transparency, and the preservation of legal privileges.

Leaders should assign AI responsibilities within each department and establish approval procedures for new AI tools that consider the specific ethical and legal issues of each department. Another important step is to develop and document standard protocols for selecting AI tools and verifying outputs.

Invest in talent and training

While AI can be a powerful tool, people drive its success. Leaders should train staff not just on how to use AI tools but also on how to develop judgment to review AI outputs critically — an essential skill for building trust and ensuring compliance. Leaders must also identify skills gaps within the organization, address professional liability concerns, and foster a culture of responsible experimentation. They should also communicate openly about the organization’s overall AI strategy and its benefits to gain better buy-in from all professionals.

Businesses should consider using free or low-cost training resources from professional associations and technology providers. This is a cost-effective way to boost your organization’s training programs.

Prioritize and pilot

Leaders should identify two or three high-impact, high-feasibility pilot projects involving AI tools. Ideally, these projects should address critical pain points, such as contract analysis, regulatory monitoring, or tax provision automation. Early successes can build momentum, offer important lessons, and demonstrate the value of a solid AI strategy — all of which will facilitate broader adoption. Piloting new AI tools should be viewed as an ongoing process, incorporating feedback from frontline professionals.

Measure, iterate and adapt

Leaders should establish key performance indicators (KPIs) to measure the success of AI initiatives in areas like reducing compliance incidents, speeding up risk detection, and increasing the accuracy of tax provisions. It’s also important to measure AI initiatives against departmental goals to better evaluate their impact on overall performance. Additionally, regularly reviewing progress and being ready to adjust strategies is crucial as regulatory requirements, technology, and organizational needs change.

You should routinely track each department’s progress using simple before-and-after comparisons. This approach can often show return on investment without the need for complex analytics.

The winners in the AI arms race are those organizations that have all the elements of their strategic plan both mapped out and carefully implemented. We think that careful planning is worth it. With AI the risks of getting it wrong may look high but so are the potential returns.

Read more:
Seven keys to a successful AI strategy for corporate enabling functions

Virgin StartUp has launched a first-of-its-kind accelerator programme to help dyslexic entrepreneurs scale their businesses, highlighting the growing economic contribution of founders with Dyslexic Thinking skills.

New analysis from global charity Made By Dyslexia shows that dyslexic entrepreneurs contribute at least £4.6 billion to UK GDP every year and support more than 60,000 jobs. The research also suggests that one in three business founders are dyslexic, with skills such as creativity, problem-solving, visualisation and big-picture thinking proving highly suited to entrepreneurship.

The new programme, called Momentum, is an eight-week accelerator designed to amplify those strengths through tailored workshops, one-to-one mentoring and access to specialist resources. Virgin StartUp has also created a dedicated Dyslexic Thinking space in its online community for founders. Applications close on 30 September 2025, with the programme beginning on 14 October.

Elle Upshall, Scale Up Lead at Virgin StartUp, said the initiative was designed to give founders the confidence to harness the qualities that set them apart.

“Momentum has been designed to help dyslexic founders embrace the strengths that set them apart,” she said. “We know that Dyslexic Thinking brings creative problem-solving and vision in abundance, and this programme is about giving entrepreneurs the support, tools and confidence to use these strengths to scale their businesses.”

To coincide with the launch, Made By Dyslexia, Virgin StartUp and Virgin Unite have rolled out a nationwide awareness campaign across 46 UK towns and cities. The campaign highlights world-changing inventions created by Dyslexic Thinkers – including the car, lightbulb and smartphone – and celebrates global brands founded by dyslexic entrepreneurs such as Apple, Ikea, Jo Malone and Virgin itself.

Sir Richard Branson, founder of the Virgin Group, has long described dyslexia as his entrepreneurial “superpower”. He said: “Much of my success as an entrepreneur comes from my Dyslexic Thinking. It’s my superpower. Dyslexic Thinking has enabled me to see the world differently and find new solutions to old problems. The world needs dyslexic entrepreneurs more than ever, so I’m delighted to support this campaign and I am looking forward to hearing the stories behind the dyslexic founders who join the Virgin StartUp programme.”

Kate Griggs, founder of Made By Dyslexia, said the UK economy depends on the strengths of dyslexic founders.

“Entrepreneurs are the engine of the British economy – and research shows Dyslexic Thinking fuels at least one in three of them. To boost growth, create jobs, and move the nation forward, the UK has never needed Dyslexic Thinking more,” she said.

While Dyslexic Thinking has recently been recognised as both a dictionary term and a skill on LinkedIn following campaigning efforts, many entrepreneurs still face outdated misconceptions and a lack of tailored support. Momentum is designed to close that gap.

One founder to have benefitted from early-stage support from Virgin StartUp is Alex Wright, co-founder of DASH Water, the no-sugar soft drinks brand now set to sell 50 million cans across 20 countries in 2025.

“It’s no surprise to me that Dyslexic Thinkers over-index as entrepreneurs,” said Wright. “While dyslexia felt like a challenge at school, it’s been one of my biggest assets as a founder. It’s helped me to spot gaps in the market, see problems as opportunities, dream big and build a successful, disruptive business.”

With applications now open, Virgin StartUp hopes Momentum will inspire and equip the next wave of dyslexic founders to scale their businesses and strengthen their role as a vital driver of the UK economy.

Read more:
Virgin StartUp launches Momentum accelerator to back dyslexic entrepreneurs

Mark Cuban has advised young people looking to break into the artificial intelligence sector to focus less on working for big tech companies and more on developing skills to help smaller businesses integrate AI.

Speaking in a livestreamed interview on the Technology Business Programming Network (TBPN), the billionaire entrepreneur and former Shark Tank star said there is an enormous gap in the market for “AI integrators” – people who can adapt AI tools for practical use inside corporations.

“There are 33 million companies in this country,” Cuban noted, “and only a select few have dedicated AI budgets or keep AI experts on payroll. But these companies will still need to adapt for the AI era.”

Cuban compared today’s AI opportunity to the early days of the personal computer. “When I was 24, I was walking into companies who had never seen a PC before in their lives and explaining the value,” he said. By offering customised solutions, he was able to win business and launch his career. He argued that today’s students could do the same with AI, walking into businesses and showing them how the technology could improve operations.

“This is where kids coming out of college are really gonna have a unique opportunity,” Cuban explained. Students who spend their final years learning how to customise AI models or understand tools like Sora and Veo, he said, will be able to show businesses practical ways to harness AI.

TBPN co-host John Coogan agreed, recalling how he and his co-host Jordi Hays had hired two interns not because of their resumes but because “they just built products. Instead of saying, ‘Here’s what I can do,’ they just showed us. They took a day and just built something.”

Cuban cautioned that pursuing a traditional computer science path at one of the tech giants may no longer be the best route. Instead, he urged graduates to target smaller companies with limited AI knowledge but a pressing need to stay competitive.

“Go into any other company that has no idea about AI but needs it to compete,” he said. “There’ll be more jobs than people for a long, long time.”

Read more:
Mark Cuban urges young people to focus on AI integration skills for career success

The owner of the Financial Times has launched legal action against artificial intelligence start-up Perplexity AI, accusing the company of large-scale copyright infringement and “free riding” on journalists’ work.

Japanese media group Nikkei, alongside daily newspaper The Asahi Shimbun, has filed a lawsuit claiming that San Francisco-based Perplexity used their articles without permission, including content behind paywalls, since at least June 2024.

In a joint statement, the publishers warned the practice posed a serious threat to the future of journalism.

“This course of Perplexity’s actions amounts to large-scale, ongoing ‘free riding’ on article content that journalists from both companies have spent immense time and effort to research and write, while Perplexity pays no compensation,” they said. “If left unchecked, this situation could undermine the foundation of journalism, which is committed to conveying facts accurately, and ultimately threaten the core of democracy.”

The media groups are seeking an injunction to stop Perplexity from reproducing their content and to force the deletion of any data already used. They are also seeking damages of 2.2 billion yen (£11.1 million) each.

Perplexity, which styles itself as an AI-powered search engine, has attracted more than 30 million users since its launch in 2022 and was valued at $18 billion in a funding round last month. The company is backed by high-profile investors including Amazon founder Jeff Bezos and chipmaker Nvidia.

But its rapid rise has triggered mounting tensions with publishers, who warn that AI-generated answers threaten both copyright protections and web traffic to their own platforms.

The BBC has also accused Perplexity of using its content to train AI models, with the broadcaster threatening legal action earlier this year. Perplexity dismissed the claims as “manipulative and opportunistic”.

News Corp, owner of Dow Jones and the New York Post, has separately filed a lawsuit, accusing Perplexity of copying articles without permission to train its AI and generate responses for users. Earlier this month, a New York federal court rejected Perplexity’s attempt to dismiss or transfer that case.

In response to publisher concerns, Perplexity has launched a revenue-sharing programme, which shares advertising revenue when a publisher’s content is referenced by its systems. Media groups including The Independent, Der Spiegel, Time, Fortune and the Los Angeles Times have signed up.

Bloomberg also reported this week that Perplexity is preparing a new scheme linked to its Comet internet browser, which would allow publishers to earn money when their content drives traffic, appears in search queries or is used by Comet’s AI assistant.

Aravind Srinivas, Perplexity’s chief executive, insisted the start-up wanted to work with publishers rather than against them.

“AI is helping to create a better internet, but publishers still need to get paid,” he said. “So we think this is actually the right solution, and we’re happy to make adjustments along the way.”

With lawsuits mounting on both sides of the Atlantic, the outcome of these cases could prove pivotal for how AI companies and news organisations share – and monetise – the future of digital content.

Read more:
Financial Times owner Nikkei sues Perplexity AI over copyright infringement claims