Reddit Sues Perplexity for Allegedly Scraping Data to Train AI Search Engine

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Reddit has filed a lawsuit in a New York federal court against artificial intelligence startup Perplexity, accusing it of unlawfully scraping Reddit data to train its AI-based “answer engine.” The complaint also names three other companies — Lithuania-based Oxylabs, Russia-based AWMProxy, and Texas-based SerpApi — alleging that they bypassed Reddit’s data protection systems to extract massive amounts of content.

According to Reddit, Perplexity “desperately needs” the stolen data to strengthen its search capabilities. The platform, home to thousands of user-driven “subreddit” communities, said its content is one of the most frequently cited sources for AI-generated responses. Reddit has legally licensed its data to OpenAI, Google, and other companies, but claims Perplexity acted without authorization.

The lawsuit follows similar cases across the tech industry involving unauthorized use of copyrighted materials to train AI models. Reddit had previously sued Anthropic in June for similar conduct. Perplexity rejected the accusations, calling its methods “principled and responsible.” Meanwhile, Reddit’s chief legal officer Ben Lee accused AI firms of engaging in “industrial-scale data laundering.”

Reddit is seeking financial damages and a court order preventing Perplexity from continuing to use its content.

Lam Research Forecasts Higher Revenue Amid Strong AI Chipmaking Demand

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Lam Research has projected second-quarter revenue above Wall Street expectations, driven by surging demand for semiconductor manufacturing tools used in artificial intelligence applications. The Fremont, California-based firm said it expects revenue of around $5.20 billion, plus or minus $300 million, for the quarter ending December 28 — ahead of analysts’ forecasts of $4.81 billion, according to LSEG data.

The company’s shares rose 2.2% in after-hours trading and have already doubled this year, fueled by global investment in AI-driven chip production. Lam, a leading supplier of wafer fabrication equipment (WFE), provides critical tools used in the complex processes of chip wiring and wafer etching.

Lam faces competition from industry heavyweights such as Applied Materials, Analog Devices, and ASML, but remains well-positioned as chip designers expand capacity to meet escalating computing demands. The firm reported $5.32 billion in revenue for the previous quarter, surpassing expectations, and adjusted earnings of $1.26 per share versus $1.22 projected. The AI semiconductor boom continues to lift equipment makers across the global chip supply chain.

NextSilicon Unveils New Processor to Compete with Intel, AMD, and Nvidia

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Israeli startup NextSilicon has announced the development of a new central processing unit (CPU) aimed at challenging industry leaders Intel and AMD, while positioning itself as an alternative to Nvidia’s computing systems. The company’s flagship “Maverick-2” chip is already in production and is designed for high-precision scientific computing tasks such as nuclear weapons modeling — an area historically dominated by Nvidia.

NextSilicon, which has raised $300 million in funding, revealed that its upcoming CPU is based on RISC-V, an open-source instruction set architecture increasingly adopted by major chipmakers like Nvidia and Broadcom. The CPU is currently a test prototype but will eventually complement the company’s Maverick-2 chip to create a more complete high-performance computing ecosystem.

The startup claims its chips can perform certain computations faster and more efficiently than Nvidia’s offerings, without requiring software rewrites. U.S. Sandia National Laboratories has been testing systems powered by NextSilicon chips for three years. According to senior scientist James H. Laros III, the results have been “impressive,” showing strong potential for advancing computational performance while minimizing code changes.