financetom
Business
financetom
/
Business
/
Reddit sues Perplexity for scraping data to train AI system
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Reddit sues Perplexity for scraping data to train AI system
Oct 22, 2025 11:39 AM

(Reuters) -Social media platform Reddit ( RDDT ) sued artificial intelligence startup Perplexity in New York federal court on Wednesday, accusing it and three other companies of unlawfully scraping its data to train Perplexity's AI-based search engine.

Reddit ( RDDT ) said in the complaint that the data-scraping companies circumvented its data protection measures in order to steal data that Perplexity "desperately needs" to power its "answer engine" system.

The case is one of many filed by content owners against tech companies over the alleged misuse of their copyrighted material to train AI systems. Reddit ( RDDT ) filed a similar lawsuit against AI startup Anthropic in June that is still ongoing. 

"Our approach remains principled and responsible as we provide factual answers with accurate AI, and we will not tolerate threats against openness and the public interest," Perplexity said in a statement.

"AI companies are locked in an arms race for quality human content-and that pressure has fueled an industrial-scale 'data laundering' economy," Reddit ( RDDT ) chief legal officer Ben Lee said in a statement. 

Reddit ( RDDT ), which features thousands of interest-based "subreddit" web communities, said in the lawsuit that it is the most commonly cited source for AI-generated answers to user questions. It has licensed its content to Google, OpenAI and others for their AI training. 

Reddit ( RDDT ) said that Lithuania-based Oxylabs, Russia-based AWMProxy and Texas-based SerpApi scraped Reddit ( RDDT ) data from billions of search results without permission and that Perplexity, which does not have a license to use Reddit ( RDDT ) content, worked with at least one of the data-scraping companies to obtain Reddit ( RDDT ) material.

Spokespeople for Oxylabs and SerpApi did not immediately respond to requests for comment on the case. AWMProxy could not be reached for comment.

Reddit ( RDDT ) said it sent Perplexity a cease-and-desist letter last year, after which it "increased the volume of citations to Reddit ( RDDT ) forty-fold."

Reddit ( RDDT ) asked the court for unspecified monetary damages and an order blocking Perplexity from using its data.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Novavax Stockholder Shah Capital Withdraws Campaign Against Reelection of Directors
Novavax Stockholder Shah Capital Withdraws Campaign Against Reelection of Directors
May 20, 2024
07:40 AM EDT, 05/20/2024 (MT Newswires) -- Novavax ( NVAX ) stockholder Shah Capital said Monday it has decided to withdraw its proxy campaign against the reelection of directors at the company's annual meeting scheduled for June 13. The investment firm, which owns about 8% of Novavax's ( NVAX ) shares, said it will continue to monitor Novavax's ( NVAX...
Top Premarket Decliners
Top Premarket Decliners
May 20, 2024
07:41 AM EDT, 05/20/2024 (MT Newswires) -- ESSA Pharma ( EPIX ) shares slumped 60% Monday premarket, extending Friday's slide. FLJ Group ( FLJ ) shares fell 27%, paring the previous session's rally. UTStarcom Holdings ( UTSI ) shares fell 18% following a 2% drop in the previous session. Xinyuan Real Estate ( XIN ) shares were down 4%, reversing...
Shah Capital ends campaign against Novavax board after Sanofi deal
Shah Capital ends campaign against Novavax board after Sanofi deal
May 20, 2024
(Reuters) - Hedge fund Shah Capital said on Monday it would withdraw its campaign against the re-election of three directors on Novavax's ( NVAX ) board, after the COVID-19 vaccine maker struck a licensing deal with Sanofi. Under a deal signed on May 10, the French drugmaker will take a 4.9% stake in Novavax ( NVAX ) for $70 million...
JPMorgan Chase Raises Full-Year Net Interest Income Outlook to $91 Billion
JPMorgan Chase Raises Full-Year Net Interest Income Outlook to $91 Billion
May 20, 2024
07:39 AM EDT, 05/20/2024 (MT Newswires) -- JPMorgan Chase & Co ( JPM ) lifted its net interest income guidance for full-year 2024 to $91 billion from $90 billion ahead of its annual Investor Day celebrtation Monday. Price: 206.40, Change: +1.61, Percent Change: +0.79 ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved