
Reddit sues AI company Anthropic for allegedly ‘scraping' user comments to train chatbot Claude
Social media platform Reddit sued the artificial intelligence company Anthropic on Wednesday, alleging that it is illegally 'scraping' the comments of Reddit users to train its chatbot Claude. Reddit claims that Anthropic has used automated bots to access Reddit's content despite being asked not to do so, and 'intentionally trained on the personal data of Reddit users without ever requesting their consent.' Anthropic said in a statement that it disagreed with Reddit's claims 'and will defend ourselves vigorously.' Reddit filed the lawsuit Wednesday in California Superior Court in San Francisco, where both companies are based. 'AI companies should not be allowed to scrape information and content from people without clear limitations on how they can use that data,' said Ben Lee, Reddit's chief legal officer, in a statement Wednesday. Reddit has previously entered licensing agreements with Google, OpenAI, and other companies to enable them to train their AI systems on Reddit commentary. Those agreements 'enable us to enforce meaningful protections for our users, including the right to delete your content, user privacy protections, and preventing users from being spammed using this content,' Lee said. — ASSOCIATED PRESS
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TECHNOLOGY
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Dutch quantum computing startup establishes base in Downtown Boston
At the Wednesday Qblox ribbon-cutting: Gregg Carman, general manager and head of North America for QBlox; Jeevan Ramapriya, executive director of the Massachusetts Office of International Trade and Investment; Kim Tran, attaché for Innovation, Technology & Science at Netherlands Innovation Network in Boston; Segun Idowu, chief of Economic Opportunity and Inclusion for the City of Boston; and Niels Bultink, CEO of Qblox.
Photo courtesy of Qblox
Dutch computing startup Qblox has picked a Financial District office tower as its launchpad into North America. The privately held company, which makes and sells hardware and software to quantum computing developers, hosted a grand-opening ceremony on Wednesday at its 99 High St. office, dubbed its North American headquarters. The 150-person company is leasing 3,000 square feet from building owner Synergy to start, and has hired 10 people in the Boston area and five others elsewhere in North America, most of them scientists. The five-year-old company has around 120 customers, including around 30 in the United States, including some in Greater Boston. The North American team is led by general manager Gregg Carman, and chief financial officer Bauke van Rhijn plans to move here from the Netherlands as well. (Quantum computing, still in its infancy, uses atomic particles instead of electronic transistors to perform much faster calculations.) Chief executive Niels Bultink, a physicist by training, said the company considered other US cities but picked Boston because of its proximity to top-notch research institutes and the wealth of computing talent here. Direct flights between Amsterdam and Boston's Logan Airport helped, too. 'It's really great to be more in the business district,' Bultink said. 'We actually see that other companies that are now looking at the area, also finding this a really attractive place.' — JON CHESTO
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ECONOMY
Inflation data threatened by government hiring freeze as tariffs loom
The US Department of Labor headquarters building in Washington, D.C.
Tierney L. Cross/Getty
The Labor Department has cut back on the inflation data it collects because of the Trump administration's government hiring freeze, raising concerns among economists about the quality of the inflation figures just as they are being closely watched for the impact of tariffs. The department's Bureau of Labor Statistics, which produces the monthly consumer price index, the most closely watched inflation measure, said Wednesday that it is 'reducing sample in areas across the country' and added that it stopped collecting price data entirely in April in Lincoln, Neb., and Provo, Utah. It also said it has stopped collecting data this month in Buffalo, N.Y. In an email that the BLS sent to economists, viewed by the Associated Press, the agency said that it 'temporarily reduced the number of outlets and quotes it attempted to collect due to a staffing shortage' in April. The reduced data collection 'will be kept in place until the hiring freeze is lifted.' President Trump froze federal hiring on his first day in office and extended the freeze in April until late July, suggesting future inflation reports will also involve less data collection. — ASSOCIATED PRESS
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CONSUMER
Ground beef sold at Whole Foods may be tainted with E. coli, USDA says
This image provided by The US Safety and Inspection Service shows a package of Organic Rancher ground beef sold at Whole Foods markets that the US agriculture officials are warning may be contaminated with potentially dangerous E. coli bacteria.
Uncredited/Associated Press
US agriculture officials are warning that ground beef sold at Whole Foods markets nationwide may be contaminated with potentially dangerous E. coli bacteria. Officials issued a public health alert for 1-pound, vacuum-packed packages of Organic Rancher beef, produced on May 22 and May 23, by NPC Processing Inc., of Shelburne, Vt. The products have use-by dates of June 19 and June 20. The US Food Safety and Inspection Service did not request a recall because the products are no longer available for purchase. However, they may still be in consumers' refrigerators or freezers. The meat was produced in Australia or Uruguay and processed in the United States. It was sent to distributors in Connecticut, Georgia, Illinois, and Maryland and then to Whole Foods stores nationwide. The problem was discovered when company officials notified FSIS that they had shipped beef products that tested positive for E. coli O157:H7, a type of bacteria that can cause serious illness. To date, no illnesses linked to the product have been reported, officials said. Consumers who have the product should throw it away or return it to the store. — ASSOCIATED PRESS
CRYPTOCURRENCY
Circle IPO is said to price above range to raise $1.1 billion
The Circle logo on a smartphone.
Gabby Jones/Bloomberg
Circle Internet Group Inc. and some of its shareholders raised nearly $1.1 billion in an upsized initial public offering, according to a person familiar with the matter, pricing its shares above a marketed range in a sign that stablecoin issuers are winning greater acceptance. The stablecoin firm and some of its backers including co-founder and chief executive Jeremy Allaire sold shares Wednesday for $31 each, said the person, who asked not to be identified because the information wasn't public yet. The number of shares in the base offering was increased to 34 million shares, according to a US Securities and Exchange Commission filing Wednesday. The offering was marketed at $27 to $28 per share after being upsized once before, an earlier filing showed. At that price, Circle would have a market value of $6.9 billion based on the outstanding shares listed in the filing. Accounting for employee stock options, restricted share units, and warrants, the company would have a fully diluted valuation of about $8.1 billion. A representative for Circle declined to comment. — BLOOMBERG NEWS
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RETAIL
Walmart fires workers in two states over immigration ruling
A Walmart store in Cromwell, Conn.
Joe Buglewicz/Bloomberg
Walmart Inc. is informing stores across the country to begin identifying workers whose work authorization may be expiring after the Supreme Court ruled that the Trump administration could revoke protections for hundreds of thousands of migrants. The company is also terminating some workers in Florida and Texas who are losing temporary legal residency in the United States after the ruling. Following the Supreme Court's decision, employee authorization documents issued to nationals of Cuba, Haiti, Nicaragua, and Venezuela with a notation identifying their parole status are no longer valid for work authorization, according to a document viewed by Bloomberg News. Therefore, employment authorization for certain employees is ending sooner than what company's internal system shows, the document says. Employees are required to reverify their authorization documents this month. A company spokeswoman declined to comment. — BLOOMBERG NEWS
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GOVERNMENT
Elon Musk urges Americans act to 'kill' Trump tax cut bill
Elon Musk spoke during a news conference with President Trump in the Oval Office of the White House on May 30.
Evan Vucci/Associated Press
Tech titan Elon Musk ratcheted up his offensive against Donald Trump's signature tax bill on Wednesday, urging that Americans contact their lawmakers to 'KILL' the legislation. 'Call your Senator, Call your Congressman,' Musk wrote in a social media post. 'Bankrupting America is NOT ok!' The post came one day after Musk lashed out at the tax bill, describing it as a budget-busting 'disgusting abomination' as Republican fiscal hawks stepped up criticism of the massive fiscal package. Trump hasn't publicly responded to Musk's comments, but the White House put out a statement Wednesday saying the legislation 'unleashes an era of unprecedented economic growth.' And House Speaker Mike Johnson told reporters that Musk is 'dead wrong' about the bill and that the tax cuts will pay for themselves through economic growth. Musk's public condemnation pits him against the president at a critical time as Trump is personally lobbying holdouts on the bill. His campaign against the legislation threatens to stiffen resistance and delay enactment of the tax cuts and debt ceiling increase. Musk has attacked the legislation days after leaving a temporary assignment leading the administration's Department of Government Efficiency initiative to cut federal spending. — BLOOMBERG NEWS

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For the past year and a half, there's been a simmering concern over what AI is going to do to the workforce. Last week, that concern boiled over in a big way following back-to-back news stories: First, Anthropic CEO Dario Amodei set off alarm bells by predicting that AI would wipe out half of entry-level jobs and massively drive up unemployment. As if on cue, Business Insider announced it was laying off 21% of its staff. While the two obviously aren't directly related, the one-two punch landed hard in the media business, which faces an existential threat to its business model (in a nutshell, AI answers mean less traffic than search). But like all demographics, it's important to remember that the media isn't a monolith. While AI summaries mean rapidly changing audience habits for all publishers, BI 's move emphasizes that digital-native brands are particularly vulnerable. In her memo to BI staff, CEO Barbara Peng said the company was 'going all-in on AI,' explaining that the layoffs were part of a broader strategic shift and that, going forward, the publication would need to reduce its dependence on traffic in general. In addition to cutting click-dependent areas like its commerce business, BI would launch live journalism events, double down on subscriptions, and encourage all its journalists to embrace AI tools. This is far from the publication's first move on this course. Not long ago, the company had ambitions to become a general interest brand, but after changing its name to Insider in 2021, it switched back to Business Insider less than three years later. Since then, the publication has been investing more in unique voices and talent instead of the volume content that fueled the company's rise in the 2010s, when media brands like Vice, Quartz, and Buzzfeed were dominant. The old media playbook meets a new world The thing about BI, though, is that it was one of the few success stories to come out of that era. The publication sold to Axel Springer for $343 million dollars back in 2015, just before the bottom fell out of the scale media market. Perhaps that's why it took BI so long to adapt. It's been shedding its workforce for a couple of years—now roughly half the size of its 2022 peak of 1,000 people, according to Press Gazette. Now AI is forcing the issue. Peng's memo says that 70% of BI 's business suffers from 'traffic sensitivity,' a euphemism for content designed to attract eyeballs on the open web by appearing in search, social, or feeds. Who are those people? How do you keep them coming back or transacting with your brand? In the media model BI was built for, it didn't matter—it only mattered how big the number was on any given day. Now BI is doing exactly what any media consultant would recommend: adopting tactics like paywalled subscriptions, events, newsletters, and first-party data. It's the right strategy, but for BI the moves are reactive retreats rather than proactive bets. That doesn't mean they're bad ideas, but BI 's DNA was born out of a different era. It has a brand, but is it strong enough to make the transition that AI demands? I don't mean to pick on BI, but I do think it exemplifies why digital media companies from the 2010s are likely going to have the hardest time in the AI era. Legacy mainstream outlets like The New York Times and The Wall Street Journal have built moats with their strong journalism and diverse revenue streams. On the other end, smaller digital upstarts like 404 Media, The Ankler, and The Free Press are finding success by cultivating talent, getting scoops, and offering unique perspectives. It's the brands in between—the ones that followed the same playbook as BI —now scrambling to re-architect themselves to meet this moment. Ziff Davis (owner of PCMag, Mashable, and IGN) is similarly feeling pressure, as seen in its lawsuit against OpenAI, arguing that its strategy of publishing evergreen, free content on the internet to maximize clicks has made it particularly vulnerable to substitution by AI. Experimentation isn't transformation As evidence of the BI 's all-in bet on AI, Peng talked about AI-powered features like its site search and dynamic paywall. She also mentioned that 75% of the staff were now using AI tools, specifically ChatGPT Enterprise, with the aim to get the figure to 100%. The note encourages 'bold experimentation,' and says they're building prompt libraries and sharing everyday AI use cases among staff. However, this description of AI initiatives, while directionally solid, sounds like it's still in the early stages. Contrast that with an AI-forward newsroom like Reuters, which has built modular tooling tailored to newsroom workflows, under a clear 'reduce, augment, transform' framework. It's great that they're moving forward, but without a focus on systems, transformation will be piecemeal. And while the choice of ChatGPT is expected given the company's partnership with OpenAI, pushing a single AI model over all the others is inherently limiting. For other digital media brands who fear death or downsizing, BI 's approach is instructive. It's urgent to rethink dependency on traffic, and even the lens of measuring success through traffic. Certainly, ad impressions are the KPI driving all this, and it's not going to go away overnight (or ever, really). But a long decline seems inevitable. Shifting focus from traffic to metrics that measure impact, engagement, and loyalty is step one. That's the path to cultivating direct reader relationships—essential to building media brands that are sustainable in the AI era. BI 's shift is a step in the right direction, but survival won't come from cost-cutting or tool adoption alone. The digital media brands that make it through this next wave will be the ones that know who they're for and what makes them worth returning to. That means being willing to rethink how things get made in the first place—and why.