The social media platform Reddit has formally sued artificial intelligence startup Anthropic, alleging that its unauthorized use of platform data constituted a breach of contract and carried out “illegal and improper business practices.” In a lawsuit filed in San Francisco on Wednesday, Reddit claims that Anthropic uses its personal data to train AI models without users' consent. This unauthorized commercial use of content has caused damage to the company. After the news was announced, Reddit's stock price closed up more than 6% on the same day. Anthropic, founded by a former OpenAI executive in 2021, was valued at $61.5 billion in financing led by Lightspeed Venture Capital in March of this year, and received strong support from Amazon. Reddit, which completed its IPO in 2024, is currently worth about $22 billion.

The social media platform Reddit has formally sued artificial intelligence startup Anthropic, alleging that its unauthorized use of platform data constituted a breach of contract and carried out “illegal and improper business practices.” In a lawsuit filed in San Francisco on Wednesday, Reddit claims that Anthropic uses its personal data to train AI models without users' consent. This unauthorized commercial use of content has caused damage to the company. After the news was announced, Reddit's stock price closed up more than 6% on the same day. Anthropic, founded by a former OpenAI executive in 2021, was valued at $61.5 billion in financing led by Lightspeed Venture Capital in March of this year, and received strong support from Amazon. Reddit, which completed its IPO in 2024, is currently worth about $22 billion.