FTC Investigates Reddit's AI Data-Licensing Practices Before IPO, SEC Filing Reveals Probe Disclosure
The Federal Trade Commission (FTC) is investigating Reddit's AI data-licensing practices ahead of its anticipated IPO. Reddit is facing scrutiny over the sale, licensing, or sharing of user-generated content with third parties for training artificial intelligence models. Reddit has disclosed the probe in its SEC filing, stating it is in the early stages of an AI data licensing business. The investigation raises concerns about data licensing, user privacy, and potential regulatory implications.
Sources
Bloomberg Law
The FTC is probing Reddit over its deals licensing user data to AI companies, the company disclosed. https://t.co/ByORtdXR5l
Axios The FTC is investigating Reddit's effort to boost revenue by selling the rights to its content to a large AI company. Its attempt to put a price tag on its user's words could backfire and alienate volunteer community builders. https://t.co/4Wsiah3WrK
Barron's Reddit, which is seeking to raise $748 million in an upcoming IPO, says it’s in the early stages of an AI data licensing business.
