☕ Limited drama

News Corp sued Perplexity AI... October 22, 2024 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( Presented By [CardCritics]( Good morning. Self-congratulatory post alert : As of today, Morning Brew is doing the business equivalent of getting a PhD and going by “doctor.” We’re adding an Inc. to our name. It’s actually a big step we’re super proud of. What began as a janky PDF to students at the University of Michigan has ballooned into a full-fledged media company with 20 different franchises. To celebrate the glow up, we’ve got a new corporate identity: Morning Brew Inc. New name, new website, and a new home for us and all the most engaging brands in business media. To learn more, check out [MorningBrewInc.com](. —Cassandra Cassidy, Sam Klebanov, Molly Liebergall, Holly Van Leuven, Neal Freyman MARKETS Nasdaq 18,540.01 +0.27% S&P 5,853.98 -0.18% Dow 42,931.60 -0.80% 10-Year 4.182% +11.0 bps Bitcoin $67,672.13 -1.48% Target $150.91 -3.78% Data is provided by *Stock data as of market close, cryptocurrency data as of 6:00pm ET. [Here's what these numbers mean.]( - Markets: The S&P 500 and the Dow fell while the Nasdaq crept up a bit, as [investors aren’t sure]( how to feel about the slate of earnings reports due out this week. One-fifth of the S&P will host earnings calls. - Stock spotlight: Target and other stocks associated with building or decorating a home fell as concern about still-elevated interest rates loomed over Wall Street.  AI [Perplexity parries lawsuit while fundraising]( [An image of a woman holding a cell phone in front of a Perplexity AI logo]( Images Add another line to the laundry list of drama facing Perplexity: The AI startup was hit with a lawsuit yesterday by News Corp-owned Dow Jones, the Wall Street Journal, and the New York Post alleging copyright infringement, a day after the company’s plans for more funding became public. News Corp alleges that Perplexity, an AI chatbot and search engine, violated [copyright]( laws by…copying writing from the Wall Street Journal and the New York Post and using it to respond to users’ queries, “freeriding” off the news companies and simultaneously driving away their internet traffic. According to the suit: - News Corp publishers sent a letter to Perplexity in July, warning it of legal action if it continued to use copyrighted works and even proposed a licensing deal, but Perplexity ghosted them. - The complaint alleges that Perplexity can reproduce full articles if asked to and also “hallucinates,” or adds incorrect details to content. Plus: Last week, the New York Times sent a cease-and-desist letter to Perplexity demanding it stop using its content, per the WSJ. Growth at a cost Even after angering multiple media companies, Perplexity is as confident as a white man who can jump. It’s in talks for a fourth round of funding this year to [raise]( an additional $500 million—which would increase its value to ~$9 billion, up from $3 billion in June—according to the WSJ, as it tries to capitalize on the same AI-hype momentum that’s fueled OpenAI’s meteoric rise. But it isn’t OpenAI. News Corp made that clear in the lawsuit, saying it applauds “principled companies like OpenAI,” which in May made a deal worth $250 million to use News Corp’s content to train its model. Still, not everything is rosy for the ChatGPT-maker: The New York Times sued it late last year, making allegations similar to the ones News Corp brought against Perplexity.—CC Presented By CardCritics [Rackin’ up rewards]( [CardCritics]( Credit cards with category-specific rewards can be a great way to rack up miles or points. But if you spend outside of those narrow categories, you’re probably not earning much. How can you get the top-tier rewards for every dollar you spend? Don’t spend hours doing tedious research and credit card comparisons—CardCritics has already [done all that work for you](. Their review of the [top rewards cards]( (that don’t charge annual fees) outlines exactly which cards offer the most well-rounded benefits. We’re talkin’ bonuses worth up to $250, unlimited rewards on purchases, and flexible redemption options. Not to mention long intro APRs—0% for up to 15 months, which means zero interest until 2026. [Check out the top options]( and start earning more. WORLD [Tour de headlines](#) [An American flag above a McDonald's flag on the same flagpole]Smith Collection/Gado/Getty Images McDonald’s clarifies involvement in Trump visit but does not endorse him. The fast-food giant wants to be unburdened by what has been: In a message sent to employees and [reviewed by the Associated Press]( the company said a franchisee reached out to corporate after he learned that the GOP presidential candidate wanted to visit a Pennsylvania restaurant. McDonald’s agreed to the event in Feasterville (a real place), during which Trump worked the fry station and answered questions through the drive-thru while the store was closed to the public. The message also said, “McDonald’s does not endorse candidates for elected office and that remains true in this race for the next president. We are not red or blue—we are golden.” The “Central Park Five” sue Trump for “defamatory” comments. Attorneys for the group, also known as the “Exonerated Five,”[filed a federal lawsuit]( against Donald Trump for comments he made during the presidential debate hosted by ABC in September. At the event, Vice President Kamala Harris said that Trump “took out a full-page ad in the New York Times calling for the execution of five young Black and Latino boys who were innocent, the Central Park Five.” In response, Trump said the boys, who were between 14 and 16 years old at the time of the incident in 1989, “admitted—they said, they pled guilty” and that they “killed a person ultimately.” The complaint states that the members neither killed anyone nor pled guilty to the crime. 🩸 First recipient of new sickle cell treatment released from hospital after 44 days. Kendrick Cromer, who is 12 years old, left Children’s National Hospital in Washington, DC, last Wednesday to great fanfare, the New York Times reported, after he became [the first commercial patient]( to complete Bluebird Bio’s sickle cell gene therapy treatment. The treatment plan requires a number of taxing challenges, including a lengthy hospital stay and aggressive chemotherapy to eliminate bone marrow and allow edited red blood cells to repopulate it. The novel treatment costs $3.1 million.—HVL HEALTH [White House wants to make OTC birth control free]( [Birth control]( Nahuelhual/Getty Images The Biden administration unveiled a [proposed rule]( yesterday that would require private insurers to pick up the tab for all prescriptionless birth control. Insurance companies are already mandated to offer 100% coverage of some prescription contraceptives (thanks, Obamacare), but the 2010 law doesn’t address over-the-counter birth control pills, which only recently arrived in the US. Removing barriers to birth control The FDA approved an OTC birth control pill, Opill, for the first time last year. But Opill sells for $19.99 per month, so many women with private insurance looking for free access to birth control may not be able to get it. The same often goes for prescribed contraceptives: Reproductive rights activists say that some of the latest birth control methods that are associated with fewer side effects aren’t 100% covered by many insurance plans. Biden’s rule aims to fix this by also requiring insurers to fully cover a greater variety of IUDs and other products that may appear in a sex-ed curriculum. Looking ahead: The birth control access push comes just two weeks before the presidential election, in which family planning has been a major flashpoint. The next White House occupant will get to decide whether the proposal goes into effect.—SK Together With LetsGetChecked [LetsGetChecked]( Cortisol curious? It’s more than a “stress hormone.” Cortisol impacts nearly every system in our bodies: immune, reproductive, cardiovascular. When levels get too high or too low, conditions like Cushing’s disease or Addison’s disease can develop. Thankfully, [LetsGetChecked’s cortisol test]( offers insight into your levels, from the comfort of home. Use [code BREW2024]( for 25% off. ENTERTAINMENT [Disney’s succession drama, explained]( [Disney CEO Bob Iger]( Gallay/Getty Images The third time is not always the charm: Yesterday, Disney tapped ex-Morgan Stanley CEO James Gorman to be its fourth board chair in three years as the entertainment company buckles down on finding its next leader [by 2026](. ICYMI: Disney has been struggling to replace longtime CEO Bob Iger since before Covid. After extending his contract four times, he finally left in 2020 but returned to steer the ship in 2022 when his personally chosen successor from the Parks division, Bob Chapek (whom the board never interviewed), was fired. That was supposed to be a temporary return…but then Disney’s board renewed Iger’s contract again. Not anymore. Disney said it’ll name its new CEO in January 2026, a year before they’d take over. Gorman—who was already leading the succession committee—replaces former Nike CEO Mark Parker as board chair. Parker got heat from activist investor Nelson Peltz earlier this year for reneging on his pledges to quickly replace Iger. But Peltz dropped the proxy fight and sold all his Disney stock after shareholders sided with the board about Iger’s return. The limited drama script writes itself. There are four senior leaders inside Disney [competing]( to fill Iger’s shoes: TV exec Dana Walden; parks, experiences, and products chair Josh D’Amaro; movie head Alan Bergman; and ESPN overlord Jimmy Pitaro.—ML STAT [Prime number: Airport caps hugs at 3 minutes](#) [A couple hug curbside between a red suitcase and a white car. ]Daniel Pockett/Getty Images Save the long goodbyes for the economy lot. At New Zealand’s Dunedin Airport, new blue signs have sprung up along the curbside drop-off zones admonishing, “[Max hug time 3 minutes]( The airport’s CEO, Dan De Bono, says the signs are meant to keep traffic around the terminal flowing but that science was also considered in their deployment. De Bono cited a study that found even a 20-second hug will release the “love hormone” oxytocin, so the three minutes should be more than enough “to facilitate the release of hormones that contribute to these health and well-being benefits.” Perhaps the Irish goodbye can be replaced with the Kiwi farewell…—HVL NEWS [What else is brewing](#) - [Hugh Hefner]( youngest son, Cooper, wants to buy back the Playboy brand for $100 million. - [Blade Runner 2049]( producer sued Tesla, saying it ripped off copyrighted imagery for its recent robotaxi reveal. - [ByteDance]( the parent company of TikTok, fired an intern who it claims “maliciously” interfered with the training of one of its AI models. - A [Bram Stoker]( short story that eluded biographers and scholars for over 130 years was found by a fan. RECS [Tuesday To Do List] Meet: The “[househusbands]( behind powerful women working on Wall Street. Consider the lentil chip: Whole Foods has predicted the [food trends of 2025](. Say goodbye to complicated budgeting: Money with Katie’s latest and greatest Wealth Planner is coming soon to help you stay on top of your 2025 finances. Join the waitlist now for an exclusive 25% discount. [Sign up here](. Boost your funds: Get your funds working for you with the USD Interest Account2 on Uphold. Up to 4.9% APY1, no lockups3, no fees! [Get started ASAP]( Coverage secured: Learn how to [navigate your benefits]( like a pro with our new article, featuring insights from MetLife. Make informed decisions + secure coverage that’s right for you.* *A message from our sponsor. GAMES [The puzzle section](#) Brew Mini: Today’s crossword is a joke. [Play it here](. TRIVIA On International Caps Lock Day, here’s trivia on capitonyms, or words that change their meaning when they’re capitalized. For example: Turkey and turkey. We’ll give you clues to the capitalized version and the lowercase version—you have to identify the word. - Hailing from the western region of the Czech Republic / socially unconventional - Shakespeare tragedy / a small settlement - Dialect spoken by nearly 1 billion people / a small citrus - City in southern France / pleasant - Summer month / majestic - Italian automaker / a decree SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=a905682a]( ANSWER - Bohemian / bohemian - Hamlet / hamlet - Mandarin / mandarin - Nice / nice - August / august - Fiat / fiat Word of the Day Today’s Word of the Day is: admonishing, meaning “expressing warning or disapproval, especially in a gentle, earnest, or solicitous manner.” Thanks to Hannah Pugh from Tulsa, OK, for not beating us over the head with the suggestion. Submit another [Word of the Day here](. ✤ A Note From Uphold 1 Balances of $1,000 or more earn 4.9% APY. Balances under $1,000 earn 2% APY. Rate is subject to change. 2 The USD Interest Account is a brokerage account offered by Atomic Brokerage LLC, member [FINRA]( for participation in the Atomic Brokerage Cash Sweep Program. Cash deposited in the account solely for the purpose of accessing the Cash Sweep Program is not protected by SIPC. For full details about the program, see the Terms & Conditions. Content provided for informational purposes only and not investment advice. Neither Atomic Brokerage, nor any of its affiliates, is a bank. Crypto is not offered through Atomic Brokerage. Crypto is offered by Uphold and held in an Uphold account. Full disclosure. 3 Access to your funds is typically available within seconds. Transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Additionally, sometimes transfers can be delayed. Written by [Cassandra Cassidy]( Sam Klebanov, [Molly Liebergall]( [Holly Van Leuven]( and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. Get smarter in just 5 minutes - Money & Career: [Money With Katie](  [Bossy](  [Brew Markets](  [The Playbook]( Interested in podcasts? - Check out ours [here]( [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2024 Morning Brew. 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