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Reddit Sues Perplexity, Others Over Alleged Data Scraping
AlphabetAlphabet(US:GOOGL) Insurance Journal·2025-10-23 05:13

Core Viewpoint - Reddit Inc. has filed a lawsuit against Perplexity AI Inc. and three other companies for alleged unauthorized data scraping from its platform, highlighting the increasing demand and value of original data in the AI industry [1][4]. Group 1: Allegations and Legal Action - Reddit accuses three companies—Oxylabs UAB, AWMProxy, and SerpApi—of illegally collecting data from Reddit through Google search results for resale purposes [2]. - The lawsuit seeks monetary damages and a court order to halt the alleged data scraping and unauthorized use of Reddit's data, which is claimed to violate federal copyright law [3]. - This is not the first legal action taken by Reddit; the company previously sued AI firm Anthropic over similar data scraping allegations [4]. Group 2: Value of Reddit's Data - The data repository of Reddit has become increasingly valuable due to the rise of AI models that require large datasets for training and generating relevant results [4]. - Reddit has established licensing agreements with major companies like OpenAI and Alphabet Inc.'s Google for the use of its data, while taking legal action against those it believes are using the data without permission [4]. Group 3: Industry Context and Responses - The chief legal officer of Reddit, Ben Lee, stated that AI companies are in an "arms race" for quality human content, which has led to a large-scale "data laundering" economy [5]. - A spokesperson for Perplexity AI expressed that the company had not yet received the lawsuit but emphasized its commitment to fighting for users' rights to access public knowledge freely [5].