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The FTC is probing Reddit’s AI licensing offers

The FTC is probing Reddit’s AI licensing offers


The Federal Commerce Fee is trying into Reddit’s AI licensing offers, the corporate in paperwork filed with the Securities and Change Fee. The corporate, which is within the midst of its Preliminary Public Providing, stated that the regulator notified Reddit officers that it “supposed to request data and paperwork” concerning the firm’s AI offers.

It’s not clear why the FTC is probing Reddit’s comparatively new licensing enterprise, but it surely appears to be within the early phases of its inquiry. “On March 14, 2024, we acquired a letter from the FTC advising us that the FTC’s workers is conducting a personal inquiry centered on our sale, licensing, or sharing of user-generated content material with third events to coach AI fashions,” Reddit wrote in a submitting. “Given the novel nature of those applied sciences and business preparations, we aren’t stunned that the FTC has expressed curiosity on this space. We don’t consider that we now have engaged in any unfair or misleading commerce apply.”

Reddit’s offers to license its catalog of user-generated content material are a key a part of the corporate’s technique to develop its income because it will get able to . On the day the corporate filed for IPO, the corporate introduced it had reached a take care of Google, which is able to use Reddit information to coach its AI fashions. That association was reportedly value round . The corporate stated it was within the early phases of “exploring” these kind of offers.

In accordance , different corporations have acquired related letters from the FTC. The regulator has beforehand proven an curiosity within the present wave of generative AI upstarts and their relationships with giant tech corporations, The FTC is presently Microsoft, Alphabet and Amazon over their investments into distinguished AI startups.



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