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Reddit faces FTC probe on AI-related transactions ahead of IPO

Reddit logos are shown displayed in this picture shot February 2, 2021

March 15 (mod1s) - Reddit said on Friday the U.S. Federal Trade Commission is initiating an investigation centered on the company's sale, licensing and sharing of user-generated information with third parties to train artificial intelligence models. 

"Given the unique nature of these technologies and economic agreements, we are not surprised that the FTC has exhibited interest in this area. We do not feel that we have participated in any unfair or misleading trading conduct," according to Reddit.

The firm claimed it had received the notice from the FTC on March 14. 

In February, Reuters reported social media network Reddit signed an agreement with Alphabet's Google (GOOGL.O), opens new tab to make its material accessible for training the search engine giant's AI algorithms. 

The partnership with Google is worth roughly $60 million per year and highlights how Reddit is striving to create new income despite tough competition for advertising money from the likes of TikTok and Meta Platform's (META.O), opens new tab Facebook.

Earlier this week, Reddit announced it was looking for a value of up to $6.4 billion in its U.S. initial public offering as it nears one of the most anticipated stock market debuts of the previous several years.


Source: https://www.reuters.com/

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