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Reddit sued AI startup Perplexity, alleging it illegally scraped Reddit data to train its answer engine. The company seeks damages and an injunction, accusing AI firms of “data laundering” while defending licensed deals with Google and OpenAI.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Reddit sued artificial intelligence startup Perplexity in New York federal court on Wednesday,
00:06accusing it of illegally scraping Reddit data to trade its AI-powered answer engine.
00:10Reddit said the company has bypassed its data protections to obtain content
00:14Perplexity desperately needs to power its system, according to Reuters.
00:18A company which previously sued Anthropic in June said it sent Perplexity a cease and
00:21desist letter last year, after which citations to Reddit increased 40-fold.
00:25Perplexity defended its AI practices as responsible and factual,
00:29while Reddit's legal chief accused AI firms of driving a data laundering race for human content.
00:34Reddit, which is licensed content to Google and OpenAI,
00:37seeks monetary damages and an injunction barring Perplexity from using its data.
00:42For all things money, visit Benzinga.com.
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