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Reddit faces FTC inquiry over AI-data licensing practices By Investing.com

by Index Investing News
March 16, 2024
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© Reuters

[Amends article in headline and first paragraph to reflect that the FTC is conducting an inquiry rather than an investigation] 

Investing.com — Reddit is subject to a Federal Trade Commission inquiry into how the social media company plans to share and commercialize user-generated data with third-party artificial intelligence models.  

The company received a letter from the Federal Trade Commission, or FTC, advising us “that the FTC’s staff is conducting a non-public inquiry focused on our sale, licensing, or sharing of user-generated content with third parties to train AI models,” Reddit said in an update to its regulatory S-1 filing Friday.

Reddit believes, however, that it hasn’t engaged in “any unfair or deceptive trade practice,” adding that the FTC was seeking to lean about its plans and “intended to request information and documents from us as its inquiry continues”.

The update comes just as the company embarks on an initial public offering roadshow ahead of its public market debut expected next week.  Reddit plans to sell shares for $31 to $34 each in its offering, potentially valuing the company at about $6.5 billion.



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