The technology system Reddit says that the Federal Profession Payment is asking about its deals to license data to expert system business looking for to train their models.
The business revealed the examination in an SEC declaring Friday mid-day, including that it got word of the examination on Thursday.
“On March 14, 2024, we received a letter from the Federal Trade Commission (the ‘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,” the SEC declaring says. “Given the novel nature of these technologies and commercial arrangements, we are not surprised that the FTC has expressed interest in this area. We do not believe that we have engaged in any unfair or deceptive trade practice. The letter indicated that the FTC staff was interested in meeting with us to learn more about our plans and that the FTC intended to request information and documents from us as its inquiry continues.”
Reddit submitted its kind S-1 with the SEC last month, a crucial action prior to introducing an extensively anticipated going public (IPO). The declaring exposed a multitude of information about the business, consisting of a big risk (about 9 percent) had by OpenAI Chief Executive Officer Sam Altman, and a pitch to financiers that leaned greatly on the prospective income from generative AI training, keeping in mind a $203 million arrangement thought to be with Google.
“Our content is particularly important for artificial intelligence (‘AI’) — it is a foundational part of how many of the leading large language models (‘LLMs’) have been trained,” the business composed in the S-1.“Reddit data constantly grows and regenerates as users converse. As the world becomes increasingly data-driven, we offer solutions that are human- and experience-focused. We expect our data advantage and intellectual property to continue to be a key element in the training of future LLMs.”
The business stated Friday that it was readjusting its threat variables to more represent the FTC examination:
“Regulatory engagements can be lengthy and unpredictable,” the declaring stated. “Any regulatory engagement may cause us to incur substantial costs, and it is possible for any regulatory engagement to result in reputational harm or fines, cause us to discontinue or modify our products, services, features, or functionalities, require us to change our policies or practices, divert management and other resources from our business, or otherwise adversely impact our business, results of operations, financial condition, and prospects.”
Data licensing for generative AI models has actually come to be a warm subject in Hollywood, as movie and pictures from Hollywood can be beneficial as video clip and image models progress. In a similar way, data from information electrical outlets is viewed as valuable for LLMs which desire to have real-time details.
