Amazon has dispatched a legal notice to Perplexity, urging it to immediately 'cease and desist' from all operations involving its AI browser agent, Comet. Amazon claims that Comet does not transparently reveal its identity when facilitating users' shopping transactions, an act that Amazon deems as computer fraud and a breach of service terms. This lack of transparency not only diminishes the shopping experience but also raises privacy concerns. In response, Perplexity contended that Amazon's action is a strategic move to stifle competition, leveraging its own competing products, and emphasized that users should retain the freedom to choose their AI shopping agents. Reports indicate that Amazon is also in the process of developing its own AI agents, including 'Buy For Me' and Rufus. Earlier, Amazon had requested Perplexity to halt the deployment of its relevant AI agents, a request that Perplexity initially honored. However, Perplexity later resorted to using Comet to access users' Amazon accounts, masquerading as a Chrome user, and refused to discontinue its use. Following Amazon's blockage of this access, Perplexity circumvented the security measures in place. The two entities hold divergent views on issues like 'masquerading as an agent.' Prior to this, Perplexity had also been accused of copyright infringement. Amazon's CEO remarked that the current experience with AI shopping agents falls short of expectations but expressed optimism that a collaborative solution will emerge in the future. It is noteworthy that Perplexity is a client of Amazon Web Services, and Amazon's founder, Bezos, is among its investors. The company is currently valued at around $20 billion.