The US Federal Trade Commission is probing
Reddit said in a Securities and Exchange Commission filing that it received a letter March 14 advising “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.”
“Given the novel nature of these technologies and commercial arrangements, we are not surprised that the FTC has expressed interest in this area,” according to Friday’s filing. “We do not believe that we have engaged in any unfair or deceptive trade practice.”
The FTC is planning to meet with Reddit and request documents to learn more about its licensing plans, the company said. Reddit last month signed a contract allowing a company to train its artificial intelligence models on the social media platform’s content. The deal comes as the company nears its highly-anticipated initial public offering.
Reddit said the deal was worth about $60 million on an annualized basis,
The FTC has said it is increasingly focused on ensuring fairness in the fast-emerging AI market.
The agency is working to create “bright lines on the rules of development, use and management of AI inputs,” FTC Chair
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Peter Blumberg
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