Reddit is suing AI startup Anthropic for breach of contract, claiming it unlawfully used Reddit’s data to train its models. The lawsuit was filed in San Francisco on Wednesday.
Reddit alleges Anthropic trained its models using personal data from users without consent. This, Reddit argues, harms the platform through unauthorized commercial exploitation of its content. Notably, Reddit’s shares jumped over 6% on the news of the lawsuit.
The complaint describes Anthropic as a “late-blooming” AI company that disregards Reddit’s rules. Reddit’s filing states: 
"For its part, despite what its marketing material says, Anthropic does not care about Reddit’s rules or users: it believes it is entitled to take whatever content it wants and use that content however it desires, with impunity."
Anthropic responded via email, stating, "We disagree with Reddit’s claims and will defend ourselves vigorously."
Reddit has long been a source for training AI models, particularly following the rise of generative AI applications like OpenAI’s ChatGPT. In May, Reddit partnered with OpenAI, granting it permission to use Reddit content for training. Google has a similar agreement.
The lawsuit highlights that “other giants in the AI space understand and respect Reddit’s rules.” It specifies that OpenAI and Google can use public Reddit content only after agreeing to licensing terms that prioritize user privacy.
This legal battle comes as Anthropic reached a valuation of $61.5 billion in its latest funding round. Reddit recently completed its IPO, currently valuing the company around $22 billion.
Reddit’s lawsuit aims to seek damages and compel Anthropic to adhere to its contractual obligations, asking for a jury trial.
WATCH: Reddit sues Anthropic alleging wrongful use of content
