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The Cloudflare v Perplexity Saga: A Defining Moment for AI and Economic Law

Abhivardhan
Sep 11
5 min read

The explosive confrontation between Cloudflare and Perplexity represents far more than a technical dispute over web scraping, revealing fundamental tensions between AI innovation, economic rights, and the very nature of an "open internet." The Twitter discourse exposes the deeper fault lines that make this conflict so consequential.

The Great Divide: Technical Pragmatism vs. Digital Freedom

The Twitter conversation reveals a striking philosophical schism within Silicon Valley's elite. On one side stands Martin Casado from Andreessen Horowitz, arguing that identity layers for AI agents represent "basic system design"—as fundamental as API keys or service accounts. On the other side, Garry Tan from Y Combinator warns against creating "toll highways" that could fragment the open web.