AI Scandal: Reddit Says Perplexity Used Millions Of Posts Without Permission, Lawsuit Filed In New York

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Reddit has filed a lawsuit against Perplexity AI, accusing the company of illegally collecting its data to train artificial intelligence systems. The lawsuit was filed on Wednesday in federal court in New York, marking one of the most high-profile cases involving an AI company and a major social media platform.

According to court documents, Reddit claims that Perplexity used automated bots to scrape large amounts of data from Reddit’s website without permission. The lawsuit says this information was then used to help train Perplexity’s AI models, which generate human-like answers to questions similar to how ChatGPT or Google’s Gemini works.

Reddit Says Perplexity Broke the Rules

In the complaint, Reddit says that Perplexity violated its terms of service, which prohibit using Reddit’s content for commercial purposes without a license. Reddit says its servers were repeatedly accessed by automated programs that gathered posts, comments, and discussions from users.

Company lawyers said the scraping “was systematic and intentional” and that it continued even after Reddit restricted access to its data earlier this year. Reddit claims the activity hurt its business and placed heavy loads on its servers.

Reddit spokesperson Tim Rathschmidt said in a statement, “We support responsible AI development, but companies must respect the rights of platforms and users. Perplexity took our data without permission, and we are taking steps to protect our community.”

Background: Reddit’s Fight Over Data Use

This lawsuit comes as Reddit works to control how its massive library of user-generated content is used by artificial intelligence companies. The company already has paid data-licensing deals with Google and OpenAI, allowing them to use Reddit posts legally to train chatbots.

Those deals are estimated to be worth around $60 million per year, giving Reddit a new revenue stream after years of financial challenges. Reddit says Perplexity refused to negotiate a similar agreement but continued to collect data anyway.

Perplexity’s Response

Perplexity has not yet issued an official statement on the lawsuit. In past interviews, company representatives have said that the AI system relies on publicly available data from the internet to generate responses.

The company, founded in 2022, has quickly become known as one of the top competitors in the AI search market. Its app combines chatbot features with real-time web results, similar to a mix between Google Search and ChatGPT.

However, legal experts say Perplexity could face serious consequences if the court finds that the company ignored Reddit’s terms or engaged in “unauthorized access.” Under U.S. law, violating website terms of service for profit can lead to civil penalties and court injunctions to block future use.

A Growing Legal Battle in the AI World

Reddit’s lawsuit is part of a larger fight between online platforms and AI developers over who controls online content. Earlier this year, several news organizations including The New York Times also sued AI companies for allegedly using their articles without permission.

Experts say the outcome of these lawsuits could shape how AI systems are trained in the future. If Reddit wins, it could force AI companies to pay for access to public data or face similar legal risks.

“Everyone wants AI to grow, but not at the cost of stealing content,” said Sara Klein, a tech policy analyst at NYU. “If Perplexity loses, it could change how all AI companies collect information.”

What Happens Next

The court will now review Reddit’s complaint. The case could take months or even years to resolve. Reddit is asking for financial damages and a permanent court order to stop Perplexity from using its data.

In the meantime, Reddit says it will continue to protect its users’ posts and maintain transparency about how AI companies can use its platform.

Joseph Johnson

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