Reddit sues Anthropic over unauthorized data use: What to know

June 04, 2025 01:05 PM PDT | By EODHD

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Reddit sues Anthropic over unauthorized data use: What to know — Image source: Kalkine Media

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Artificial intelligence (AI) firms may face new legal hurdles as data licensing disputes heat up. Yahoo Finance Tech Editor Dan Howley joins Market Domination to explain why Reddit (RDDT) is suing Anthropic (ANTH.PVT) over unauthorized use of its content for AI training. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Video Transcript 00:00 Speaker A Let us talk about another side of AI and that is the licensing and training side because there's a story out today that Reddit is suing Anthropic. It has to do about the use of its data.

And this is really interesting because one of Reddit's revenue sources is licensing its data to train AIs. But I guess it says Anthropic wasn't supposed to be doing it. 00:37 Speaker B Yeah, I mean, this is something that, you know, unless there's some rule put in place, some kind of blanket regulation or agreement across the industry, that's going to continue to rear its head, right? We had The New York Times obviously suing OpenAI, but then they're also working with AI companies. So, you know, it's this constant back and forth of, can you train data without asking for the owner of that data for permission? And so the larger thinking is that AI companies just went ahead and did that overall. And now that there's backlash, now they have to figure out who they can work with and who they can't work with.

Reddit is a huge repository of knowledge, right? You have, not that it's all accurate. Don't get me wrong, look, you can go on Reddit to find out how to change your tires, but you can't go on there to figure out, I don't know, advanced math, or maybe you can, I don't know. I'm not using it for that. Bird IDs are great on there. But it's a huge repository for, for data for AI companies to then have access to that to train on is massive.

So you understand why they want access to it, but you can't just go in someone's house without knocking first, you know what I'm saying? 02:43 Speaker A By the way, Merlin for bird IDs. 02:47 Speaker B Yes. Excellent. I'm looking for a painted bunting. Beautiful birds.

03:05 Speaker A Okay. Always something new with AI. Always something new. 03:13 Speaker B Yeah. Yeah.

Thank you, Dan. Related Videos 02:49 Apple WWDC 2025: What to expect Yahoo Finance Video • 2 hours ago 04:09 Start of the New Consumer Renaissance: NEA's Bordetsky Bloomberg • 2 hours ago 01:43 Nvidia & CEO Jensen Huang's gains in 2025: A closer look Yahoo Finance Video • 4 hours ago 01:08 US Companies Add 37,000 Jobs in May: ADP Bloomberg • 9 hours ago View Comments

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