Reddit Battles AI Startup in Court Over Data Scraping Allegations

Reddit has filed a lawsuit against AI startup Perplexity and three other companies, accusing them of unlawfully scraping its data to train AI systems. The lawsuit highlights the ongoing legal battles between content creators and tech companies over the use of copyrighted material in AI development.


Devdiscourse News Desk | Updated: 23-10-2025 03:46 IST | Created: 23-10-2025 03:46 IST
Reddit Battles AI Startup in Court Over Data Scraping Allegations

Reddit has initiated legal proceedings against the AI startup Perplexity in a New York federal court, alleging illegal data scraping activities. The complaint, which includes three other data-scraping firms, accuses the companies of bypassing Reddit's data protection systems to exploit its information for AI training purposes.

Perplexity maintains that its approach is responsible and commitments to openness and factual information remain unwavering. Reddit, however, counters with criticism of an emerging 'data laundering' industry driven by the AI content race. The lawsuit reiterates questions surrounding AI's dependence on human-derived data.

The lawsuit also implicates firms from Lithuania and Russia, along with a Texas-based company. Reddit presses for damages and preventative measures against further data exploitation without proper licensing agreements, reflecting a larger struggle over intellectual property in AI advancements.

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