Reddit (RDDT) is suing Anthropic, alleging that the Amazon (AMZN)-backed AI startup used Reddit’s data without a licensing agreement. Reddit stock gained in Wednesday trading.

Reddit said that bots deployed by Anthropic had obtained access to Reddit data more than 100,000 times in the past year, the company said in a lawsuit filed in the Superior Court of California in San Francisco County. Anthropic has benefited by using conversations from Reddit to train its AI algorithms, in violation of Reddit policies, the lawsuit alleges.

“Reddit brings this action to stop Anthropic — who tells the world that it does not intend to train its models with stolen data — from doing just that,” the lawsuit said.

The massive trove of conversations held within Reddit’s user-forum website has made its data a hot commodity among AI developers. The company, which went public in March 2024, has reached licensing deals with ChatGPT creator OpenAI and Google parent company Alphabet (GOOGL), among others.
Reddit said the unauthorized use of its data harms the company and its users.

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