Reddit has initiated a federal lawsuit against Perplexity AI and three additional entities, accusing them of “industrial-scale” theft of user-generated content. The lawsuit, filed on October 22, 2025, in a New York federal court, targets the AI company alongside data scrapers and proxy services allegedly involved in the unauthorized acquisition of content.
Story Highlights
Reddit has filed a federal lawsuit against Perplexity AI and three data brokers, alleging unauthorized scraping of user comments.
The defendants are accused of bypassing anti-scraping protections and utilizing proxy services to acquire content without permission.
The lawsuit identifies foreign entities, including a Lithuanian data-scraping company and a firm described as a “former Russian botnet,” among the defendants.
This case contributes to an ongoing discussion regarding the use of American intellectual property by AI companies without proper authorization or compensation.
Reddit Takes Action Against Data Acquisition Practices
On October 22, 2025, Reddit filed a federal lawsuit against Perplexity AI and three other entities, citing “industrial-scale” theft of user-generated content. The lawsuit, filed in a New York federal court, names the AI company, data scrapers, and proxy services as defendants in what Reddit describes as digital piracy. Ben Lee, Reddit’s Chief Legal Officer, characterized the defendants’ actions as circumventing security systems to acquire valuable assets belonging to American users and the platform.
Regarding Perplexity -> “Perplexity’s business model is effectively to take Reddit’s content from Google search results,” then feed it into an A.I. model and “call it a new product,” the lawsuit said.
Reddit said it had set a trap for Perplexity by creating a “test post” on… pic.twitter.com/qwikYu2vGn
— Glenn Gabe (@glenngabe) October 22, 2025
International Entities Implicated in Content Acquisition
The defendants include Oxylabs UAB, a data-scraping company based in Lithuania, and AWMProxy, which is described as a “former Russian botnet,” along with Texas-based SerpApi. These entities are accused of systematically collecting Reddit’s content through methods designed to bypass the platform’s protective measures. Allegations include acquiring content indirectly via Google Search results rather than direct access to Reddit, indicating efforts to circumvent platform security.
AI Companies and Licensing Agreements
While companies such as Google and OpenAI have entered into licensing agreements with Reddit, Perplexity AI is alleged to have pursued a different approach. The lawsuit claims that Perplexity and its co-defendants avoided fair compensation by acquiring content without negotiating legitimate access. Reddit states it implemented anti-scraping measures to protect user data and ensure appropriate compensation for access to content generated by its over 100 million daily American users. This lawsuit follows a similar case filed by Reddit in June 2025 against Anthropic for alleged unauthorized data acquisition.
Discussion on Digital Property Rights
This lawsuit addresses the protection of intellectual property rights for individuals whose contributions contribute to AI development. Reddit asserts that user-contributed content should benefit the creators and the platform that supports them. Perplexity AI’s statement regarding its commitment to “fight vigorously for users’ rights to freely and fairly access public knowledge” is presented in contrast to the allegations of unauthorized content acquisition.
The outcome of this case, alongside the Anthropic case scheduled for January 2026, is anticipated to influence how AI companies access training material and compensate content creators within the tech industry.
Watch the report: Reddit Sues Perplexity AI: The Battle Over Data Scraping Explained
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Reddit sues AI company Perplexity and others for ‘industrial-scale’ scraping of user comments
Reddit sues Perplexity AI over industrial-scale scraping of user comments
