FTC queries Reddit over AI-related transactions ahead of IPO

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FTC queries Reddit over AI-related transactions ahead of IPO
FTC queries Reddit over AI-related transactions ahead of IPO

The Federal Trade Commission (FTC) of the United States is looking into the company’s sales, licenses, and exchanges of user-generated material with third parties with the aim of training artificial intelligence models.

On Friday, Reddit said that the Federal Trade Commission (FTC) of the United States is investigating the firm for selling, granting licenses for, and exchanging user-generated content with outside parties for the purpose of training artificial intelligence models.

We are not surprised that the FTC is interested in this field, considering how unique these technologies and business structures are. Reddit stated, “We don’t think we’ve participated in any unfair or dishonest trading practices.

The business declared that it had received the FTC letter on March 14.

Social networking site Reddit and Alphabet’s Google (GOOGL.O) have reached an agreement for Reddit’s material to be used as training data for the search engine giant’s artificial intelligence algorithms.

Reddit, a social media network, reportedly reached an agreement with Alphabet’s Google (GOOGL.O) in February, opening a new tab to allow its content to be used for training the search engine giant’s artificial intelligence algorithms.

The agreement, which is estimated to be worth $60 million annually, demonstrates how Reddit is attempting to make additional money in the face of intense competition from platforms like Facebook’s new tab and TikTok for advertising revenues.

Reddit announced earlier this week that it was aiming for a valuation of up to $6.4 billion in its U.S. IPO as it approaches one of the most eagerly anticipated stock market debuts in recent memory.

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