The social media company Reddit faces the FTC probe due to its data licensing issues, which relate to the training of artificial intelligence systems.Â
The disclosure was made in an amended S-1 registration statement that was therefore filed with the Securities and Exchange Commission. FTC, which received an inquiry from Wikipedia on March 14, is happening at the same time as Reddit’s previously publicized IPO.
The FTC’s non-public inquiry focuses on Reddit’s sale, licensing, or sharing of user-generated content with third parties for AI model training. Reddit stated it does not believe it has engaged in any unfair or deceptive trade practices.
However, the platform acknowledges the novelty of these technologies and commercial arrangements. It sees the FTC’s interest as unsurprising.
Reddit recently deepened its partnership with Google through a $60 million per year deal, granting Google access to its vast user data for AI model training.Â
This agreement aims to enhance the discoverability of Reddit’s content on Google’s platform and improve the understanding and relevance of Reddit content. Google highlighted the benefits of the Reddit Data API for accessing fresher information efficiently.
Also Read: Reddit Files for IPO, Discloses Bitcoin and Ethereum Holdings
