Reddit Files Lawsuit Against Anthropic, Accusing Them of Illegally Using Data
🚨 Reddit Slaps Lawsuit on Claude's Creators Over Alleged Data Theft 🔥
Ever heard of a Reddit-on-Reddit drama? Here's the lowdown: AI startup, Anthropic - the team behind the Claude chatbot - is in hot water for allegedly snatching Reddit users' personal data without a licence.
Reddit, popularly known as RDDT, is sniffing for blood and has filed a lawsuit against the rogue team of AI developers. Shares of the platform sky-rocketed by a cool 7% on Wednesday, and it's been scaling up about 28% so far in 2025.
The lawsuit, dropped on Wednesday in California, alleges that Anthropic invasively scoured Reddit's servers an eye-popping 100,000 times, despite having previously claimed to have barred their bots from such activity back in July 2024.
The lawsuit hinges on Reddit's user agreement that strictly prevents companies from using users' data for commercial gain without signing on the dotted line. Big-shot AI providers like OpenAI and Alphabet's google aren't breaking this rule - they've agreed to terms with Reddit and have a license to train their AI models on Reddit's content.
Reddit's complaint demands compensation for the value of the content it claims Anthropic swiped and used to fuel the training of its models. Additionally, they're requesting an order barring Anthropic from using any technology derived from Reddit's content - including, potentially, the Claude chatbot.
Anthropic's spokesperson had this to say to Investopedia: "We disagree with Reddit's accusations and plan to defend ourselves robustly."
Fun fact: This is the first time a Big Tech company has taken aim at an AI model provider over their shady training data practices. 🎯
ℹ️ Insights:- Details of the Lawsuit: Reddit alleges that Anthropic infringed on users' privacy by scraping their data, in direct violation of Reddit's user agreement.- Legal Action: The suit was filed in a Northern California court and seeks compensatory damages and restitution for the value of the content Anthropic used to train its models.- Contrast with Other AI Providers: Reddit has agreements with other AI companies like OpenAI and Google, ensuring that these companies can train their models on Reddit's data respecting the users' interests and privacy.- Response from Anthropic: Anthropic stated that they disagree with Reddit's claims and intend to vigorously defend themselves in court.
During the legal proceedings, Anthropic will have to address allegations of violating Reddit's user agreement by scrupulously mining user data, a practice considered unlawful. Subsequently, Anthropic's spokesperson has signaled intent to contest these charges robustly, potentially impacting the future of AI business and technology, particularly regarding artificial-intelligence models financed by such practices.
