Reddit SUES Anthropic For It’s Degenerate Data, Stock Moons 7% On News…

“Did you touch my drum set?!”

Reddit just went full Dale Doback with the “don’t touch my stuff” diss on Anthropic, all while lobbing a lawsuit straight at the AI darling that puts the entire generative AI cesspool on notice. The charge is as follows: Anthropic scraped Reddit’s 20 years of user-generated chaos without so much as a “please,” “thank you,” or more importantly… the small matter of a licensing agreement. Which to Reddit, is a big no-no. 

(Source: Giphy) 

In short, according to Reddit’s flamethrower report, Anthropic didn’t just accidentally trip over a subreddit or two… their bots hit Reddit’s servers over 100,000 times after allegedly saying they’d stopped. “Unlawful and unfair business acts,” “breach of contract,” “white knight cosplay”... this filing is basically a roast session disguised as a civil complaint. Anthropic didn’t respond to a request for comment, presumably because their lawyers are too busy reading the user agreement they ignored. 

(Source: Wall Street Journal) 

What’s more is that Reddit isn’t shy about naming names. They’re practically waving their OpenAI and Google contracts around like VIP wristbands. Both of those AI giants pay up to license Reddit’s data, and now OpenAI CEO Sam Altman… who just so happens to have a stake in Reddit worth north of $1B… is presumably grinning like the cat that got the cream on this. Especially considering the complaint even calls out Anthropic’s 2021 research paper that straight-up admits how valuable Reddit data is for AI training. Which, if you’re into metaphors, is like robbing a friggin’ bank and filming the whole thing on TikTok. (Shedeur Sanders prank call, anyone?). 

Now for why this matters: For investors, Reddit shares spiked more than 7% after news of the lawsuit hit. Turns out “protecting our data” is suddenly sexier to Wall Street than any meme stock pump. Meanwhile, Anthropic is sitting on a $61.5 billion valuation, with backers like Amazon and Salesforce, and just launched Claude Opus 4… it’s latest Large Language Model that, if Reddit’s right, probably knows more about r/AmItheAsshole subreddit than most therapists.

(Source: Giphy) 

Meaning, this may end up being a layup win for Reddit. “Other AI giants respect our rules. Anthropic doesn’t. We want damages, a jury trial, and the end of AI startups treating our communities like an all-you-can-eat salad bar.” Translation: Reddit wants to force Anthropic to play by the same rules as everyone else… meaning, if you want the data, open your wallet. 

In the end, every AI CEO is presumably sweating. OpenAI and Google already cut checks to Reddit for training access. Anthropic just got caught speeding without a license, and now they are under fire, while Reddit’s stock is literally on fire. Of course, we’ll wait to see how Anthropic retaliates, but for now, it’s looking good for Reddit and their investors.

(Source: Giphy) 

So with that, do what you will with this information and place your bets accordingly. Until next time, friends…

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Stocks.News holds positions in Google and Amazon as mentioned in the article. .