logo
Reddit sues AI firm Anthropic for ‘illegally' scraping millions of posts to train chatbot Claude

Reddit sues AI firm Anthropic for ‘illegally' scraping millions of posts to train chatbot Claude

Malay Maila day ago

SAN FRANCISCO, June 5 — Social media outlet Reddit filed a lawsuit yesterday against artificial intelligence company Anthropic, accusing the startup of illegally scraping millions of user comments to train its Claude chatbot without permission or compensation.
The lawsuit in a California state court represents the latest front in the growing battle between content providers and AI companies over the use of data to train increasingly sophisticated language models that power the generative AI revolution.
Anthropic, valued at US$61.5 billion (RM260 billion) and heavily backed by Amazon, was founded in 2021 by former executives from OpenAI, the creator of ChatGPT.
The company, known for its Claude chatbot and AI models, positions itself as focused on AI safety and responsible development.
'This case is about the two faces of Anthropic: the public face that attempts to ingratiate itself into the consumer's consciousness with claims of righteousness and respect for boundaries and the law, and the private face that ignores any rules that interfere with its attempts to further line its pockets,' the suit said.
According to the complaint, Anthropic has been training its models on Reddit content since at least December 2021, with CEO Dario Amodei co-authoring research papers that specifically identified high-quality content for data training.
The lawsuit alleges that despite Anthropic's public claims that it had blocked its bots from accessing Reddit, the company's automated systems continued to harvest Reddit's servers more than 100,000 times in subsequent months.
Reddit is seeking monetary damages and a court injunction to force Anthropic to comply with its user agreement terms. The company has requested a jury trial.
In an email to AFP, Anthropic said 'We disagree with Reddit's claims and will defend ourselves vigorously.'
Reddit has entered into licensing agreements with other AI giants including Google and OpenAI, which allow those companies to use Reddit content under terms that protect user privacy and provide compensation to the platform.
Those deals have helped lift Reddit's share price since it went public in 2024.
Reddit shares closed up more than six percent on Wednesday following news of the lawsuit.
Musicians, book authors, visual artists and news publications have sued the various AI companies that used their data without permission or payment.
AI companies generally defend their practices by claiming fair use, arguing that training AI on large datasets fundamentally changes the original content and is necessary for innovation.
Though most of these lawsuits are still in early stages, their outcomes could have a profound effect on the shape of the AI industry. — AFP

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Lawyers face sanctions for citing fake cases with AI, warns UK judge
Lawyers face sanctions for citing fake cases with AI, warns UK judge

The Star

time17 minutes ago

  • The Star

Lawyers face sanctions for citing fake cases with AI, warns UK judge

FILE PHOTO: A message reading "AI artificial intelligence," a keyboard and robot hands are seen in this illustration created on January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo LONDON (Reuters) -Lawyers who use artificial intelligence to cite non-existent cases can be held in contempt of court or even face criminal charges, London's High Court warned on Friday, in the latest example of generative AI leading lawyers astray. A senior judge lambasted lawyers in two cases who apparently used AI tools when preparing written arguments, which referred to fake case law, and called on regulators and industry leaders to ensure lawyers know their ethical obligations. "There are serious implications for the administration of justice and public confidence in the justice system if artificial intelligence is misused," Judge Victoria Sharp said in a written ruling. "In those circumstances, practical and effective measures must now be taken by those within the legal profession with individual leadership responsibilities ... and by those with the responsibility for regulating the provision of legal services." The ruling comes after lawyers around the world have been forced to explain themselves for relying on false authorities, since ChatGPT and other generative AI tools became widely available more than two years ago. Sharp warned in her ruling that lawyers who refer to non-existent cases will be in breach of their duty to not mislead the court, which could also amount to contempt of court. She added that "in the most egregious cases, deliberately placing false material before the court with the intention of interfering with the administration of justice amounts to the common law criminal offence of perverting the course of justice". Sharp noted that legal regulators and the judiciary had issued guidance about the use of AI by lawyers, but said that "guidance on its own is insufficient to address the misuse of artificial intelligence". (Reporting by Sam Tobin; Editing by Sachin Ravikumar)

Wall Street futures edge up ahead of jobs data, Tesla rebounds
Wall Street futures edge up ahead of jobs data, Tesla rebounds

Free Malaysia Today

time33 minutes ago

  • Free Malaysia Today

Wall Street futures edge up ahead of jobs data, Tesla rebounds

Most megacap and growth stocks rose in early trading. (AP pic) NEW YORK : US stock index futures nudged higher today as investors awaited monthly payrolls data, while Tesla shares rebounded on signs of cooling tensions between CEO Elon Musk and US President Donald Trump. Shares of the electric carmaker rose 4.2% in premarket trading after plunging about 15% yesterday following Trump's public feud with Musk, including threats to cut off government contracts with Musk's companies. Tesla shed about US$150 billion in market value yesterday, weighing on Wall Street indexes. White House aides scheduled a call between Trump and Musk for today, Politico reported, likely to ease the feuding after an extraordinary day of hostilities. A slew of soft economic data this week has raised concerns about an economic slowdown caused by trade uncertainties, with investors looking to May non-farm payrolls at 8.30am to gauge the labour market's health and the Federal Reserve's (Fed) interest rate trajectory. 'Whether it's the ISM surveys, the ADP figures, or the jobless claims, the tone is clearly one of a weakening economic momentum,' said Julien Lafargue, chief market strategist at Barclays Private Bank. The payrolls data comes ahead of the Fed's policy meeting later this month where traders expect the US central bank to keep interest rates unchanged. Traders currently expect two rate cuts by the end of this year, with the first 25 basis-point cut seen in September, according to data compiled by LSEG. Yesterday, investors also took stock of a leader-to-leader call between Trump and Chinese leader Xi Jinping as they confronted after weeks of brewing trade tensions and a battle over critical minerals. The leaders, however, left key issues unresolved for future talks. US equities rallied sharply in May, with the S&P 500 index and the tech-heavy Nasdaq scoring their biggest monthly percentage gains since November 2023, thanks to softening of Trump's harsh trade stance and upbeat earnings reports. The S&P 500 remains nearly 3.3% below record highs touched in February. At 7am, Dow E-minis were up 112 points, or 0.26%, S&P 500 E-minis were higher 20.5 points, or 0.34%, and Nasdaq 100 E-minis rose 72.25 points, or 0.33%. Most megacap and growth stocks rose in early trading. Shares of Amazon advanced 0.9%. Broadcom shares fell 2.9% after the networking and custom AI chipmaker's quarterly revenue forecast failed to impress investors. Lululemon shares lost 21.1% as the sportswear maker cut its annual profit target, citing higher costs from Trump's tariffs. Shares of Nike fell 1.3%. Shares of virtual document signing platform DocuSign fell 19.2% after first-quarter results.

Asian equities see largest monthly foreign inflow in 15 months
Asian equities see largest monthly foreign inflow in 15 months

The Star

time2 hours ago

  • The Star

Asian equities see largest monthly foreign inflow in 15 months

A woman walks past an electronic screen displaying the stock index prices of Asian countries outside a brokerage in Tokyo, Japan April 24, 2025. REUTERS/Issei Kato ASIAN equities attracted strong foreign inflows in May as concerns over an immediate economic hit from higher U.S. tariffs eased, prompting a return by investors who had previously exited large and concentrated positions in the region. The inflows marked a sharp reversal after four consecutive months of net foreign selling. According to data from LSEG, foreign investors bought approximately $10.65 billion worth of equities across India, Taiwan, South Korea, Thailand, Indonesia, Vietnam, and the Philippines, registering their largest monthly net purchase since February 2024. U.S. President Donald Trump's announcement of reciprocal tariffs in early April stoked concerns over the impact on Asian exports, exporter margins, and regional supply chains, but a subsequent 90-day pause for most countries later in the month helped ease investor fears and revive interest in regional assets. Goldman Sachs said it has revised its earnings growth forecast for MSCI Asia Pacific ex-Japan (MXAPJ) to 9% for both 2025 and 2026, raising estimates by 2 and 1 percentage points, respectively, citing stronger macro growth in China and U.S.-exposed markets. The upgrade was also supported by $600 billion in AI-related investments from Saudi Arabia to U.S. firms, which are expected to benefit Taiwan and Korea, though the impact may be partially offset by a weaker dollar, the brokerage said. Taiwan equities witnessed $7.28 billion worth of foreign inflows, the largest monthly cross-border net purchase since November 2023. Foreigners also acquired a significant $2.34 billion worth of Indian stocks in their largest monthly net purchase since September 2024. South Korean, Indonesian and Philippine stocks also saw foreign inflows worth a net $885 million, $338 million and $290 million, respectively, while Thai stocks suffered $491 million of net selling. Despite heightened market volatility in the first half of the year driven by concerns over President Trump's trade policies, the MSCI Asia-Pacific Index has risen about 8.8% year-to-date, outperforming both the MSCI World Index , which is up 5.4%, and the S&P 500 Index, which has gained 0.98%. - Reuters

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store