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Reddit (RDDT) Says Anthropic Scraped Too Deep, Files Lawsuit

On Wednesday, June 4, Bloomberg reported that Reddit Inc. (NYSE:RDDT) has filed a lawsuit against Anthropic, alleging unauthorized use of its user-generated content to train AI models. The suit, lodged in San Francisco Superior Court, claims that Anthropic tried to access Reddit’s data more than 100,000 times since mid-2024 without securing a licensing agreement.

Anthropic is an American AI startup founded in 2021 that has developed a family of large language models (LLMs) named Claude that competes with OpenAI’s ChatGPT and Google’s Gemini.

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Reddit accuses Anthropic of commercially exploiting its platform’s content and user data, in violation of its terms of service. According to Reddit’s legal team, the company engaged in multiple discussions with Anthropic to establish a data licensing deal, similar to the arrangements it has reached with OpenAI and Google. However, those talks broke down, prompting the lawsuit as a last resort.

Anthropic, which markets itself as a more ethical and safety-focused AI company, has pushed back on Reddit’s claims and plans to contest them in court.

Ben Lee, Reddit’s chief legal officer, has clearly said this regarding the development:

“We will not tolerate profit-seeking entities like Anthropic commercially exploiting Reddit content for billions of dollars without any return for redditors or respect for their privacy.”

This legal move highlights growing tensions between content platforms and AI developers. It also contributes to a growing wave of legal challenges that AI companies are facing regarding the use of data for model training. Notably, OpenAI and Microsoft are also defending against a high-profile copyright lawsuit from The New York Times and other publishers, as per Bloomberg.

While Reddit states a preference to resolve the dispute out of court, it also signals a broader industry push to ensure platforms are compensated when their data is used to fuel commercial AI development.

Reddit Inc. (NASDAQ:RDDT) is a U.S.-based social media company that operates a platform comprising user-generated communities, known as “subreddits,” where individuals can engage in discussions, share content, and vote on posts.

While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDDT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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