Social media platform Reddit (NYSE:RDDT) has filed a lawsuit against artificial intelligence startup Anthropic, accusing the company of unlawfully scraping user-generated content to train its AI assistant, Claude, in violation of Reddit's terms of service. The complaint alleges that Anthropic used automated tools to access Reddit's forums over 100,000 times without authorization, harvesting vast amounts of data in breach of the site's public content policy.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Social media outlet Reddit filed a lawsuit Wednesday against artificial intelligence company Anthropic, accusing the startup of illegally scraping millions of user comments to train its Claude chatbot without permission or compensation.
Reddit is suing Anthropic for allegedly using the site's data to train AI models without a proper licensing agreement, according to a complaint filed in a Northern California court on Wednesday. Reddit claims in the complaint that Anthropic's unauthorized use of the site's data for commercial purposes was unlawful, and alleges the AI startup violated Reddit's user agreement.
In its lawsuit, Reddit said Anthropic also declined to enter into a licensing agreement for data and had unjustly enriched itself at Reddit's expense.
Reddit sues AI startup Anthropic for breach of contract, 'unfair competition'
Reddit is suing AI startup Anthropic for using the online-discussion site's data without a licensing agreement.
Reddit's powerful network effect, vast user-generated content, and strong brand create a durable moat with little real competition. Rapid user growth and surging ad monetization, including dynamic product ads and rising ARPU, drive significant revenue upside potential. Reddit Pro Trends and partnerships with AI companies further enhance monetization opportunities and reinforce the platform's value to advertisers.
Reddit stock benefits from ad business growth, AI initiatives, and new partnerships, but faces stiff competition and valuation concerns.
Target and Williams Sonoma posted disappointing earnings, but much of the bad news seems priced in; retail sector remains mixed with Gap showing strength. CoreWeave's rapid post-IPO rise and major OpenAI deal highlight continued robust AI infrastructure spending.
RDDT and BMBL are well-known players in the social networking market. Let's find out which one is a better investment option right now.
Shares of Reddit (RDDT) slipped Monday as Wells Fargo downgraded the stock amid concerns that Google's implementation of AI search features could hurt the social media company.