Reddit Sues Anthropic for Alleged Breach of Contract and Unfair AI Data Use
Reddit filed a lawsuit on Wednesday against AI startup Anthropic, alleging the company unlawfully scraped and used Reddit’s data to train its AI models without authorization. The lawsuit, filed in a San Francisco federal court, centers on claims of breach of contract and unfair business practices.
The social media platform contends that Anthropic violated Reddit’s terms of service by using its content for commercial AI development without agreeing to licensing terms or securing user consent. In the filing, Reddit accused the startup of “offering nothing in return to Reddit and its users” while capitalizing on the community-driven content that fuels its platform.
“Anthropic does not care about Reddit’s rules or users: it believes it is entitled to take whatever content it wants,” the complaint stated.
Reddit, which went public in 2024 and now has a market cap of approximately $22 billion, emphasized that major AI companies such as OpenAI and Google have already entered into licensing agreements that respect user privacy and the platform’s data usage policies.
In contrast, Reddit says Anthropic disregarded these expectations.
AI Training Practices Under Legal Scrutiny
Since the launch of ChatGPT in late 2022, Reddit’s vast archive of user-generated content has become a valuable training ground for large language models. With over two decades of posts on nearly every topic imaginable, the platform’s data offers unique insight for generative AI tools.
Reddit’s recent partnerships with OpenAI and Google allow limited, licensed access to public content. The company says these agreements ensure protection for its user base while supporting the development of responsible AI. The lawsuit argues that Anthropic’s use of Reddit content was not only unauthorized but also violated these principles.
Anthropic, which was founded by former OpenAI employees and recently valued at $61.5 billion, has received backing from major investors, including Amazon, Salesforce Ventures, and Cisco Investments.
In a response issued via email, an Anthropic spokesperson stated: “We disagree with Reddit’s claims and will defend ourselves vigorously.”
Legal Outcome Could Shape AI Data Access Norms
Reddit’s filing aims to secure damages and enforce compliance with its data use policies. The company is requesting a jury trial to resolve the matter. As legal disputes over training data grow more common, the case could set an important precedent regarding the boundaries of AI data collection.
Reddit framed the lawsuit as a defense of its communities, asserting that its platform was never meant to be “appropriated by commercial actors seeking to create billion-dollar enterprises.” As AI companies continue to scale, the outcomes of such legal battles may reshape the rules for accessing and monetizing public data on the internet.
