Reddit is suing Anthropic, an artificial intelligence startup, alleging breach of contract and accusing the company of “unlawful and unfair business acts” by using Reddit’s platform data without permission. The complaint was filed Wednesday in San Francisco.
Allegations of Unauthorized Use of User Data
The lawsuit claims Anthropic has trained its AI models on personal data from Reddit users without their consent, harming Reddit by exploiting its content commercially without authorization. Reddit’s shares rose more than 6% following the news.
Reddit’s filing describes Anthropic as a “late-blooming” AI company that markets itself as an ethical leader in AI, but accuses it of disregarding Reddit’s rules and user rights. The company asserts Anthropic believes it can take Reddit content and use it freely, “with impunity.”
Anthropic responded via email, stating, “We disagree with Reddit’s claims and will defend ourselves vigorously.”
Since the rise of generative AI following OpenAI’s ChatGPT launch in late 2022, Reddit’s extensive user-generated content has been a major training source for many AI models, including Anthropic’s Claude.
Reddit has partnerships with OpenAI and Google that allow those companies to use Reddit content under licensing agreements that protect user privacy. The lawsuit points out that other AI giants respect Reddit’s rules, contrasting this with Anthropic’s alleged unauthorized use.
OpenAI CEO Sam Altman, a former Reddit board member and major shareholder, currently holds a stake valued at over $1 billion.
Industry and Company Details
Anthropic, founded in 2021 by former OpenAI executives, was valued at $61.5 billion in March, with funding from Lightspeed Venture Partners, Salesforce Ventures, Cisco Investments, and Amazon.
Reddit went public in 2024 and now has a market capitalization around $22 billion.
The filing emphasizes Reddit’s clearly defined rules governing data use, as stated in its user agreement. Reddit stresses that while the platform remains open to users, it does not permit commercial entities to exploit its communities to build billion-dollar businesses without compensating Reddit or its users.
Reddit seeks damages and wants Anthropic to comply with its contractual and legal obligations. The company has requested a jury trial.
What The Author Thinks
This lawsuit highlights a crucial issue in AI development—balancing innovation with respecting the rights and agreements of content platforms and their communities. While AI startups need large datasets, unauthorized use undermines trust and threatens the sustainability of user-driven platforms like Reddit. Protecting creators and platforms is essential to ensure fair and responsible AI growth.
