back
Get SIGNAL/NOISE in your inbox daily

The legal battle over AI training data has reached a new front as Reddit challenges Anthropic‘s data practices in court, marking another significant clash between content platforms and AI companies over intellectual property rights. This lawsuit highlights the growing tension between social media platforms seeking to monetize their content and AI companies that need vast amounts of training data to develop their models.

The big picture: Reddit has filed a lawsuit against AI startup Anthropic, accusing the Claude chatbot maker of scraping and using Reddit’s content for training without permission despite public assurances it wouldn’t do so.

  • The complaint, filed in San Francisco Superior Court, alleges Anthropic has resisted entering a licensing agreement while training its Claude chatbot on Reddit content.
  • Reddit claims Anthropic’s bots have accessed or attempted to access its content more than 100,000 times, contradicting Anthropic’s July 2023 assurance that it had blocked its bots from accessing the platform.

What they’re saying: Reddit’s Chief Legal Officer Ben Lee emphasized the need for boundaries in the AI ecosystem despite supporting open internet principles.

  • “We believe in an open internet,” Lee stated, while adding that AI companies need “clear limitations” on how they use scraped content.
  • Anthropic has contested the allegations, with a spokesperson stating: “We disagree with Reddit’s claims and will defend ourselves vigorously.”

Key details: Reddit’s lawsuit claims Anthropic has styled itself as an AI “white knight” committed to trust and honesty while allegedly violating Reddit’s user policies.

  • The social media platform quoted Claude admitting it was “trained on at least some Reddit data” and acknowledging uncertainty about whether that content was deleted.
  • Reddit noted that competitors like Google and OpenAI have established licensing agreements, while Anthropic has refused to “respect Reddit’s guardrails.”

Behind the numbers: Anthropic has reached $3 billion in annualized revenue according to sources familiar with the matter, recently launching its newest Claude models, Opus 4 and Sonnet 4, on May 22.

  • The lawsuit alleges Anthropic has “enriched itself to the tune of tens of billions of dollars” through its unauthorized use of scraped content.
  • Reddit is seeking unspecified restitution, punitive damages, and an injunction to prevent Anthropic from using its content for commercial purposes.

Why this matters: The case represents the latest in a growing number of legal challenges over AI companies’ use of third-party content for training, highlighting unresolved questions about intellectual property rights in the AI era.

  • Anthropic has significant backing from major tech companies, including Amazon and Google parent Alphabet, raising the stakes of this legal confrontation.
  • The outcome could influence how AI companies approach data licensing and content agreements with major platforms going forward.

Recent Stories

Oct 17, 2025

DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment

The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...

Oct 17, 2025

Tying it all together: Credo’s purple cables power the $4B AI data center boom

Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...

Oct 17, 2025

Vatican launches Latin American AI network for human development

The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...