logo
Reddit sues AI giant Anthropic over content use

Reddit sues AI giant Anthropic over content use

Straits Times2 days ago

Reddit's lawsuit represents the latest front in the growing battle between content providers and AI companies. PHOTO: REUTERS
San Francisco - Social media outlet Reddit filed a lawsuit on June 4 against artificial intelligence (AI) company Anthropic, accusing the start-up 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.
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.
Anthropic, valued at US$61.5 billion (S$79 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 chief executive 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 6.6 per cent on June 4 following news of the lawsuit. AFP
Join ST's Telegram channel and get the latest breaking news delivered to you.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Country Garden's May sales drop 28% with no revival in sight
Country Garden's May sales drop 28% with no revival in sight

Business Times

time25 minutes ago

  • Business Times

Country Garden's May sales drop 28% with no revival in sight

[BEIJING] Country Garden Holdings' sales slide intensified in May, with the developer faring worse than the broader China housing sector. The Foshan-based company, once China's largest property firm, reported monthly sales that dropped 28 per cent from a year earlier to about 3.1 billion yuan (S$555.03 million), Bloomberg calculations based on filings from Friday show. The decline was from an already low base, and was much steeper than the 8.6 per cent drop in new home sales posted by the country's top 100 developers. Falling consumer prices in China are eroding corporate profits and employee income, leading to suppressed demand for home purchases, just as the effects of a stimulus blitz last September start to wear off. Buyers remain concerned about developers' ability to finish projects on time, leading new-home sales to drop since March after a brief period of stabilising. Country Garden has been counting on a turnaround in sales as the 33–year-old developer continues lengthy restructuring talks more than a year after defaulting on its debt. Yet its efforts to win backing for a US$14.1 billion offshore restructuring are running into resistance after a key group of banks said failure to accept some of their demands would be a 'deal breaker,' according to a court hearing last month. The builder needs support from three-quarters of debt holders in two individual groups – bank lenders and bondholders. It has said that it has backing from holders of 70 per cent of bonds, but even if it gets more from that class, it still needs bank creditors to get on board to pass the plan through a 'scheme of arrangement' procedure. It has been given a few months' reprieve from its liquidation petition hearing, with the next one set for Aug 11. The builder said it has seen stabilisation signs in a number of cities, according to a statement citing a May management meeting. But analysts remain concerned. Country Garden's contracted sales could face 'a protracted contraction on waning buyer sentiment in China's low-tier cities,' Bloomberg Intelligence analysts Kristy Hung and Monica Si wrote in a May report. BLOOMBERG

Link Reit is said to weigh Singapore IPO of non-HK, China assets
Link Reit is said to weigh Singapore IPO of non-HK, China assets

Straits Times

time31 minutes ago

  • Straits Times

Link Reit is said to weigh Singapore IPO of non-HK, China assets

Linked Reit, which owns Jurong Point shopping mall, is considering a potential IPO in Singapore. PHOTO: MERCATUS CO-OPERATIVE Link Reit is said to weigh Singapore IPO of non-HK, China assets HONG KONG – Link Reit is considering listing a real estate investment trust in Singapore that would include some of its properties outside of China and Hong Kong, according to people familiar with the matter. Hong Kong-based Link has held early discussions with advisers on the potential initial public offering, the people said, asking not to be identified because the information is private. Deliberations are preliminary and the company may decide to not proceed with a listing, the people said. A representative for Link Asset Management, the manager of Link Reit, declined to comment. A listing would come at a time when Link seeks to diversify from property management. The company announced in recent months that it would expand its business into fund management by working with capital partners. It has tapped John Saunders, former head of Asia Pacific real estate at BlackRock to lead the fund operation called Link Real Estate Partners. Link Reit has risen 27 per cent this year in Hong Kong, giving the firm a market value of around US$13.7 billion (S$17.6 billion). Singapore's market has been struggling to reverse a trend of delistings. Since the start of 2024, just five companies have gone public in the city, raising only US$39 million combined, data compiled by Bloomberg show. There are some green shoots. Japan's Nippon Telegraph & Telephone Corp is working on a Reit IPO in Singapore that could take place this year, while US data security firm AvePoint filed for a second listing in the city-state in January, Bloomberg News has reported. BLOOMBERG Join ST's WhatsApp Channel and get the latest news and must-reads.

Singapore stocks rise after Trump-Xi talks; STI up 0.4%
Singapore stocks rise after Trump-Xi talks; STI up 0.4%

Straits Times

timean hour ago

  • Straits Times

Singapore stocks rise after Trump-Xi talks; STI up 0.4%

SINGAPORE - The local bourse ended in a positive territory on Jun 6 after a call between US President Donald Trump and Chinese President Xi Jinping boosted investors' confidence. The benchmark Straits Times Index (STI) rose 0.4 per cent or 16.6 points to end at 3,934.29. Across the broader market, gainers beat losers 266 to 205 as 849.5 million securities worth $1.1 billion changed hands. Mr Xi and Mr Trump agreed to further dialogue on trade after their call on June 5. Mr Trump said that disputes over rare-earth exports were resolved, and he had accepted China's invitation to visit. Beijing said it had complied with the terms of last month's trade truce. Mr Trump also reversed his stance on Chinese students, welcoming them to study in the US. Maybank's research team noted in a report on June 6: 'While this may be a positive development for risk, we are also wary that Trump may simply shift his attention to another country instead of China.' The team expects Mr Trump's trade and tax policy to continue swinging the markets, and highlighted that Mr Trump and Mr Musk's feud on social media offset some equity gains from positive US-China trade developments. 'We hold on to selling US dollar on rally alongside fading US exceptionalism, and a weaker NFP (non-farm payrolls) print would reinforce the narrative that US exceptionalism is indeed fading,' wrote the team. On the STI, Sembcorp Industries led the gains, up 3 per cent or $0.20 at $6.85. SIA was at the bottom of the list, down 1.3 per cent or $0.09 at $7.09 on a cum-dividend basis. The trio of local banks ended the day mixed. OCBC was up 0.3 per cent or $0.05 at $16.28. DBS rose 0.2 per cent or $0.10 to $45.12. UOB was down 0.1 per cent or $0.04 at $35.25 on a cum-dividend basis. Regional markets closed mixed on June 6. Japan's Nikkei 225 rose 0.5 per cent, while the Bursa Malaysia Kuala Lumpur Composite Index dropped 0.1 per cent. Hong Kong's Hang Seng Index was down 0.5 per cent. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.

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