Reddit is suing artificial intelligence startup Anthropic for what it’s calling a breach of contract and for engaging in “unlawful and unfair business acts” by using the social media company’s platform and data without authority.

The lawsuit, filed in San Francisco on Wednesday, claims that Anthropic has been training its models on the personal data of Reddit users without obtaining their consent. Reddit alleges that it has been harmed by the unauthorized commercial use of its content.

Reddit opens the complaint by calling Anthropic a “late-blooming” AI company that “bills itself as the white knight of the AI industry.” Reddit follows by saying, “It is anything but.”

“For its part, despite what its marketing material says, Anthropic does not care about Reddit’s rules or users: it believes it is entitled to take whatever content it wants and use that content however it desires,
with impunity,” the filing said.

Anthropic did not immediately respond to CNBC’s request for comment.

Since the generative AI boom began with the launch of OpenAI’s ChatGPT in late 2022, Reddit has been at the forefront of the conversation. Its 20-year-old site is filled with user-generated information about hundreds of thousands of topics and has been a main source of training for large AI models, including Anthropic’s Claude.

Reddit announced a partnership with OpenAI in May that will allow the company to train its AI models on Reddit content. The company has a similar agreement with Google.

In the lawsuit, Reddit said that “other giants in the AI space understand a respect Reddit’s rules,” which is why it has entered into formal partnerships with companies like OpenAI and Google. OpenAI CEO Sam Altman is a former board member and major shareholder in Reddit, with a stake now valued at well over $1 billion.

Reddit has established rules dictating how its data can be used, which the company says in the filing “are clearly memorialized” in the company’s user agreement.

“While Reddit has always been of the mind that the community should be open to all humans looking for connection and community, it has never allowed its platform and the countless communities who find a home on it to be appropriated by commercial actors seeking to create billion-dollar enterprises and offering nothing in return to Reddit and its users,” the complaint says.

Reddit said the aim of the lawsuit is to seek damages and compel Anthropic to abide by its contractual and legal obligations.

This is breaking news. Please refresh for updates.

Amazon plans to spend $10 billion on new data centers in North Carolina to expand its artificial intelligence infrastructure, the company said Wednesday.

Amazon has earmarked up to $100 billion this year on capital expenditures, with the lion’s share going to AI-related projects. Similar to other major tech companies, Amazon is racing to build out its capacity to power AI tasks in order to keep pace with rivals including Microsoft, Google and OpenAI.

Amazon CEO Andy Jassy has called generative AI a “once-in-a-lifetime type of business opportunity.”

The investment in North Carolina will create roughly 500 jobs in the state, Amazon said.

“Generative AI is driving increased demand for advanced cloud infrastructure and compute power, and our investment will support the future of AI from AWS data centers in the Tar Heel State,” the company wrote in a blog post.

The company said in January it would spend at least $11 billion in Georgia to build new data centers to support cloud computing and AI demand.

Amazon has announced a slew of generative AI products over the past year, including its own language models, Trainium chips, a shopping chatbot and a marketplace for third-party models called Bedrock. It has also invested $8 billion in AI startup Anthropic, which is known for its Claude chatbot.