What's Going On With Reddit Shares Today?

Reddit Inc. (NYSE:RDDT) shares are trading higher Wednesday after the company filed a lawsuit against artificial intelligence startup Anthropic, accusing it of unauthorized use of Reddit's data for AI model training.

What To Know: According to the complaint filed in California, Reddit claims Anthropic accessed its site more than 100,000 times even after stating it had stopped scraping data.

The lawsuit alleges Anthropic trained its AI models, including the recently released Claude Opus 4, using Reddit content without a license or user consent, despite Reddit having formal data licensing deals with OpenAI and Google, according to The Wall Street Journal.

Reddit argues its data is particularly valuable due to the human-to-human conversational format across over 100,000 subreddits. The company says it previously attempted to reach a licensing agreement with Anthropic but those talks failed. Reddit also points to a 2021 Anthropic research paper that specifically cited Reddit data as useful for training AI systems.

The stock's move reflects investor optimism that Reddit is taking steps to protect and monetize its data assets in the AI space.

RDDT Price Action: Reddit shares closed Wednesday up 6.63% at $118.21, according to Benzinga Pro.

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