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Reddit is suing synthetic intelligence startup Anthropic for what it is calling a breach of contract and for partaking in “illegal and unfair enterprise acts” by utilizing the social media firm’s platform and information with out authority.
The lawsuit, filed in San Francisco on Wednesday, claims that Anthropic has been coaching its fashions on the non-public information of Reddit customers with out acquiring their consent. Reddit alleges that is has been harmed by the unauthorized industrial use of its content material.
Reddit shares spiked greater than 7% on Wednesday, hitting their excessive for the day after the lawsuit was made public.
The corporate opened the criticism by calling Anthropic a “late-blooming” AI firm that “payments itself because the white knight of the AI trade.” Reddit follows by saying, “It’s something however.”
“For its half, regardless of what its advertising materials says, Anthropic doesn’t care about Reddit’s guidelines or customers: it believes it’s entitled to take no matter content material it needs and use that content material nevertheless it needs,
with impunity,” the submitting stated.
In an emailed assertion, an Anthropic spokesperson stated, “We disagree with Reddit’s claims and can defend ourselves vigorously.”
Because the generative AI growth started with the launch of OpenAI’s ChatGPT in late 2022, Reddit has been on the forefront of the dialog. Its 20-year-old web site is crammed with user-generated details about a whole lot of hundreds of subjects and has been a primary supply of coaching for giant AI fashions, together with Anthropic’s Claude.
Reddit introduced a partnership with OpenAI in Might that may permit the corporate to coach its AI fashions on Reddit content material. The corporate has an identical settlement with Google.
Within the lawsuit, Reddit stated that “different giants within the AI house perceive and respect Reddit’s guidelines.” It named OpenAI and Google as firms that “are permitted to make use of public Reddit content material however solely after agreeing to Reddit’s licensing phrases” defending person privateness.
OpenAI CEO Sam Altman is a former board member and main shareholder in Reddit, with a stake now value effectively over $1 billion.
In March, Anthropic was valued at $61.5 billion in a funding spherical led by Lightspeed Enterprise Companions, and together with participation from Salesforce Ventures and Cisco Investments. The corporate, based in 2021 by ex-OpenAI executives, has been backed closely by Amazon.
Reddit held its IPO in 2024 and now has a market cap of about $22 billion.
Reddit says it has established guidelines dictating how its information can be utilized, which the corporate says within the submitting “are clearly memorialized” within the Reddit’s person settlement.
“Whereas Reddit has all the time been of the thoughts that the neighborhood must be open to all people in search of connection and neighborhood, it has by no means allowed its platform and the numerous communities who discover a dwelling on it to be appropriated by industrial actors looking for to create billion-dollar enterprises and providing nothing in return to Reddit and its customers,” the criticism says.
Reddit stated the purpose of the lawsuit is to hunt damages and compel Anthropic to abide by its contractual and authorized obligations. It is asking for a jury trial.
WATCH: Reddit sues Anthropic alleging wrongful use of content material
