Getty (NYSE:GETY) shares added more than 6% after it announced a global multi-year licensing agreement with AI search and discovery platform Perplexity.
The deal will see Getty’s extensive library of creative and editorial imagery integrated directly into Perplexity’s AI-powered workflows, the company announced on Friday.
Through the partnership, Perplexity will leverage Getty Images’ API technology to enhance the quality and variety of visuals presented in its AI search results, which the company said would offer users a richer and more engaging visual experience.
The collaboration also aims to improve how imagery is displayed, with new features including proper image credits and links back to the source, helping users understand and comply with legal usage of licensed images.
“We are pleased to reach this agreement with Perplexity, which acknowledges the importance of properly attributed content and its value in enhancing AI‑powered products,” said Nick Unsworth, Vice President Strategic Development at Getty Images.
Analysts at Wedbush see the announcement, though light on detail, as positive for Getty.
“Getty has long searched for an AI partner that values and respects proper, legal attribution for its high-quality images, thus preserving its moat in the industry,” they wrote.
“We expect this to be a mutually beneficial agreement, such that Perplexity has full access to Getty’s content library across editorial and creative, while Getty will be able to leverage Perplexity’s AI engine to enhance its search and discovery tools for customers.”
The analysts also noted that the timing of the agreement may signal Getty’s confidence in its pending combination with Shutterstock, which is under regulatory review.
“Getty’s new agreement with Perplexity underscores the urgency of its need to address competitive threats from generative AI quickly and head on,” Wedbush wrote.
Wedbush reiterated an ‘Outperform’ rating on Getty, with a 12-month price target of $7, noting that the deal supports Getty’s strategy of maintaining its competitive advantage while capitalizing on AI-driven growth opportunities.