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Reddit drags Perplexity in a new lawsuit, accusing it of building up a $20 billion company off stolen data

October 23, 2025
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Reddit drags Perplexity in a new lawsuit, accusing it of building up a  billion company off stolen data
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Reddit submitted a suit versus Perplexity, in addition to a number of other information mining business, implicating them of taking the social networks platform’s important information.

Reddit’s suit, submitted on Wednesday in Manhattan federal court, stated Perplexity and the 3 other companies it took legal action against– Oxylabs UAB, AWM Proxy, and SerpApi– unlawfully prevented Reddit’s digital guardrails by scraping its material through Google’s online search engine outcomes.

” These Offenders resemble potential bank burglars, who, understanding they can not enter the safe-deposit box, burglarize the armored truck bring the money rather,” Reddit’s suit declares.

Reddit stated it sent out a cease-and-desist letter to Perplexity in May 2024 requiring it stop scraping Reddit information unless it negotiated with the social networks business, as Google and OpenAI had actually done.

Perplexity stated it “was not utilizing Reddit material to train any AI designs which it would appreciate Reddit’s robots.txt,” according to the suit.

However Perplexity’s citations to Reddit increased “forty-fold after Reddit informed it to stop,” the suit included.

” Instead of regard Reddit and its users’ rights, what Perplexity has actually carried out in reaction is merely create progressively sneaky plans to prevent Reddit’s security systems and policies,” the suit states.

According to the suit, Perplexity appears to have actually utilized a minimum of among the information scrapers to consume the platform’s information into its AI designs.

Associated stories.

Service Expert informs the ingenious stories you need to know

Service Expert informs the ingenious stories you need to know

” To put it simply, Perplexity’s organization design is successfully to take Reddit’s material from Google search engine result, feed them into a 3rd party’s LLM, and call it a brand-new item,” the suit states. “While that organization design has actually in some way equated into a $20 billion assessment, it has actually not led to a determination to spend for what others (consisting of Google) have.”

Perplexity representative Jesse Dwyer stated the business “will constantly combat intensely for users’ rights to easily and relatively gain access to public understanding.”

” Our method stays principled and accountable as we supply accurate responses with precise AI, and we will not endure hazards versus openness and the general public interest,” Dwyer stated.

Agents for SerpApi and Oxylabs likewise stated they will safeguard themselves versus Reddit’s accusations. AWMProxy, recognized in the suit as a previous Russian botnet, might not right away be grabbed remark.

A Reddit representative informed Service Expert that the business has actually invested 10s of countless dollars throughout a number of years on anti-scraping systems.

The suit stated Reddit captured Perplexity bypassing its guardrails by establishing a test post that served as a digital “significant costs.”

The test post might just be seen by Google’s online search engine, the suit stated, so Perplexity and other AI business must not have actually had the ability to utilize it for their designs.

The contents of the post quickly appeared in Perplexity, showing that it or another information scraper it dealt with had actually taken the material without authorization.

” Within hours, questions to Perplexity’s ‘respond to engine’ produced the contents of that test post,” Reddit’s suit states.

Reddit’s suit estimates a social networks post from Cloudflare’s CEO comparing Perplexity to “North Korean hackers” for appearing to attempt to conceal its web-crawling activity.

” Some allegedly ‘respectable’ AI business act more like North Korean hackers,” Matthew Prince composed on X in August. “Time to call, embarassment, and difficult block them.”

In a declaration to Service Expert, Reddit’s primary legal officer Ben Lee stated Oxylabs UAB, AWM Proxy, and SerpApi were “book examples” of prohibited scrapers.

” Scrapers bypass technological securities to take information, then offer it to customers starving for training product,” he stated. “Reddit is a prime target since it is among the biggest and most vibrant collections of human discussion ever developed.”

Reddit released in 2005 as an online conversation online forum, however is now attempting to include worth through a brand-new technique: search traffic. The choice has actually put Reddit in competitors with business like Perplexity.

” Reddit is among the couple of platforms placed to end up being a real search location. We provide something unique: a breadth of discussions and understanding you can’t discover anywhere else,” the business stated in its Q2 report in July. “Each week, numerous countless individuals concern Reddit searching for suggestions, and we’re turning more of that intent into active users of Reddit’s native search.”

Online search traffic has actually ended up being a lucrative market led by business like Google, which revealed a broadened collaboration with Reddit in March 2024 to train its AI designs on the platform’s material. On its end, Reddit got to Google’s Vertex AI, enabling the platform to include improved search and other functions. One month later on, Reddit went public with a $6.4 billion assessment.



Source: Business Insider.

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