The FTC is looking into Reddit’s AI licensing deals, the company in documents filed with the Securities and Exchange Commission. The company, which is in the midst of its initial public offering, said the regulator notified Reddit officials that it “intends to request information and documents” about the company’s AI dealings.
It’s unclear why the FTC is looking into Reddit’s relatively new licensing business, but it appears to be in the early stages of its investigation. “On March 14, 2024, we received a letter from the FTC notifying us that FTC officials are conducting a non-public investigation focused on our sale, licensing, or sharing of user-generated content with third parties to train AI models,” Reddit wrote in submission. “Given the innovative nature of these technologies and commercial arrangements, we are not surprised that the FTC has expressed interest in this area. We do not believe we have engaged in an unfair or deceptive business practice.”
Reddit’s deals to license its catalog of user-generated content are a key part of the company’s strategy to boost revenue as it prepares to . On the day the company filed for its IPO, the company announced it had struck a deal with Google, which will use data from Reddit to train its AI models. This arrangement is reported to be worth around . The company said it is in the early stages of “exploring” these types of deals.
According to , other companies have received similar letters from the FTC. The regulator has previously taken an interest in the current wave of generative AI start-ups and their relationships with big tech companies. The FTC is currently targeting Microsoft, Alphabet and Amazon over their investments in prominent AI startups.
https://www.engadget.com/the-ftc-is-probing-reddits-ai-licensing-deals-212902998.html?src=rss
