Reddit ignites a fierce battle in the Data Theft in AI Race by suing Perplexity AI for copyright infringement. The social platform accuses the startup of secretly scraping millions of user posts to fuel its AI tools, without permission or payment. This high-stakes lawsuit, filed in New York federal court on October 23, 2025, exposes the cutthroat scramble for human-generated data that powers chatbots and search engines.
Reddit's move highlights growing tensions as AI firms hoard online conversations to train models. Chief Legal Officer Ben Lee blasts the trend as “industrial-scale data laundering,” where companies dodge deals and steal content. Perplexity, a San Francisco-based “answer engine,” allegedly bought scraped data from shady providers to bypass rules. This clash underscores Reddit's push to monetise its treasure trove of real-user discussions, which it calls one of the world's richest sources of human insight.
Key Accusations in Reddit's Data Theft in AI Race Suit
Reddit doesn't hold back, naming Perplexity and three data scrapers in the complaint. They claim these players masked their bots as normal users to harvest posts en masse. Here's the breakdown:
- Perplexity AI: Acted as a “willing customer,” using scraped Reddit data via Google searches to build its AI without consent.
- Oxylabs (Lithuania): Sold scraping services, hiding identities and locations to grab copyrighted content.
- SerpApi (Texas): Provided tools that funneled Reddit posts into Perplexity's systems.
- AWMProxy: Labeled a “former Russian botnet,” it allegedly disguised scrapers to evade detection.
Sources reveal Reddit offered Perplexity a paid partnership, but founder Aravind Srinivas snubbed it. The platform even nudged Google to probe Perplexity's search tricks. Meanwhile, Reddit cashes in on legit deals with Google and OpenAI for data access—yet sues rule-breakers like Perplexity and Anthropic (hit in June for 100,000+ scrapes).
Also Read: 7 Best AI Logo Maker Companies: Your Guide To Perfect Branding
Perplexity fires back regarding data theft in AI race, claiming it hasn't seen the suit and champions “free access to public knowledge.” Oxylabs gripes about no pre-suit talks, vowing a strong defense. SerpApi echoes denials, awaiting service.
This Data Theft in AI Race saga joins a wave of suits from media giants and authors against AI data grabs. As generative tech booms, Reddit draws a hard line: Want our wisdom? Pay up or face court. Experts predict more fights, reshaping how AI gobbles the web's human gold. Will Perplexity fold, or escalate the war?
More News To Read: OpenAI’s GPT-5.1 Thinking To Compete with Gemini 3 Pro
