Reddit CEO Steve Huffman spoke out Thursday about the company's ongoing legal battles with artificial intelligence firms, emphasizing the importance of safeguarding user data. The comments came during an interview with CNBC's Jim Cramer.
Reddit recently filed lawsuits against Perplexity AI, Anthropic, and other companies, alleging that they scraped the platform's content without permission to train AI systems.
Huffman acknowledged the complexity of the issue, saying, "Look, we see both sides of this. Of course, I can't add anything to the legal conversation right now, but our complaints are out there, and I think they're actually a good read. Our duty is to protect, you know, our data for our business and our users."
According to AP News, the San Francisco-based company's lawsuit against Perplexity targets not only the AI firm but also smaller entities that facilitate data scraping, including Lithuanian company Oxylabs UAB, Texas-based SerpApi, and a web domain called AWMProxy, described by Reddit as a former Russian botnet.
Reddit claims these services bypass protections to collect content illegally, which is then sold to AI developers.
"Scrapers bypass technological protections to steal data, then sell it to clients hungry for training material. Reddit is a prime target because it's one of the largest and most dynamic collections of human conversation ever created," said Reddit Chief Legal Officer Ben Lee.
The lawsuit also alleges copyright violations, unfair competition, and unjust enrichment.
SerpAPI calls Reddit lawsuit a threat to the ‘free and open web’ via @MrDannyGoodwin https://t.co/brwBGfKFPF pic.twitter.com/cvmsz4VU19
— Search Engine Land (@sengineland) October 29, 2025
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Perplexity, Anthropic, and the other companies have denied the allegations.
A spokesperson for Perplexity said the company "will always fight vigorously for users' rights to freely and fairly access public knowledge," while SerpApi and Oxylabs also expressed plans to defend themselves in court.
Despite the legal disputes, Huffman stressed that Reddit maintains strong partnerships with other AI firms, including Google and OpenAI, which have signed licensing agreements to use Reddit's data legally.
Last year, Reddit reportedly signed a $60 million deal with Google.
Huffman noted that these collaborations are beneficial for both sides: "We've realized the value of Reddit's data and learned the ways we can collaborate to make our mutual products better for our mutual customers. I look forward to progressing these relationships."
Huffman also highlighted Reddit's strong financial performance, pointing to a 74% year-over-year growth in ad revenue, CNBC reported.
"From what we can see, the ads market is stable," he told Cramer, adding that the company continues to focus on delivering results for its advertisers amid broader economic uncertainty.
Originally published on vcpost.com
