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Reading: Reddit Sues Perplexity Over Mass Information Scraping
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StockWaves > Financial News > Reddit Sues Perplexity Over Mass Information Scraping
Financial News

Reddit Sues Perplexity Over Mass Information Scraping

StockWaves By StockWaves Last updated: October 23, 2025 4 Min Read
Reddit Sues Perplexity Over Mass Information Scraping
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October 23, 2025October 23, 2025



Reddit is taking over AI firm Perplexity and three different entities, accusing them of “industrial-scale” scraping of consumer feedback for industrial use. The lawsuit, filed in a New York federal court docket on Wednesday, claims these firms collected hundreds of thousands of Reddit feedback with out permission.

Perplexity AI, identified for its chatbot and search engine, competes with Google and ChatGPT. Additionally named are Lithuanian data-scraper Oxylabs, Texas startup SerpApi (which lists Perplexity as a buyer), and an internet area referred to as AWMProxy. This area is described by Reddit as a “former Russian botnet.”

This marks Reddit’s second AI-related lawsuit this yr, following a June case towards Anthropic. In contrast to that case, this lawsuit targets not solely AI firms but in addition the lesser-known companies. These companies provide the AI business with scraped content material.

Reddit’s Chief Authorized Officer, Ben Lee, mentioned scrapers “bypass technological protections to steal information.” He referred to as Reddit a “prime goal” as a result of it hosts one of many largest collections of human conversations on-line. The lawsuit accuses the defendants of unfair competitors, unjust enrichment, and copyright violations.

Perplexity responded that it has not but obtained the swimsuit. They are going to “vigorously defend customers’ rights to freely entry public information.” SerpApi and Oxylabs additionally rejected Reddit’s claims. They emphasise they are going to defend themselves in court docket.

Scraping public on-line information is widespread, however Reddit argues these firms are appearing like “would-be financial institution robbers” by bypassing protections. They even scrape Reddit content material through Google Search. Reddit claims Perplexity knowingly purchased this information as an alternative of negotiating a correct license.

The lawsuit comes as Reddit continues to license its content material to AI firms like Google and OpenAI, producing income from its 100+ million day by day customers. This happens forward of its Wall Road debut.

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