The FTC is probing Reddit’s AI licensing deals

The Federal Profession Compensation is considering Reddit’s AI licensing deals, the business divulged in documentation submitted with the Stocks and Exchange Compensation. The business, which is in the middle of its Going public, stated that the regulatory authority alerted Reddit authorities that it “intended to request information and documents” regarding the business’s AI deals.

It’s unclear why the FTC is probing Reddit’s reasonably brand-new licensing service, however it appears to be in the onset of its query. “On March 14, 2024, we received a letter from 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,” Reddit created in a declaring. “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.”

Reddit’s deals to certify its brochure of user-generated web content are a crucial component of the business’s approach to expand its profits as it prepares yourself to go public. On the day the business applied for IPO, the business revealed it had actually gotten to a handle Google, which will certainly make use of Reddit information to educate its AI designs. That setup was supposedly worth around $60 million. The business stated it remained in the onset of “exploring” these kinds of deals.

According to Axios, various other firms have actually obtained comparable letters from theFTC The regulatory authority has actually formerly revealed a passion in the present wave of generative AI startups and their partnerships with big technology firms, The FTC is presently checking out Microsoft, Alphabet and Amazon over their financial investments right into noticeable AI start-ups.