Reddit Faces FTC Inquiry Over AI-Data Licensing Practices
FTC Investigation Update
Reddit is currently under an inquiry by the Federal Trade Commission regarding its data-sharing practices with third-party AI models. The FTC is looking into how Reddit plans to commercialize user-generated data, raising questions about potential privacy implications.
FTC Letter Details
In a recent regulatory filing, Reddit disclosed that it had received a letter from the FTC outlining the inquiry. The FTC’s staff is specifically interested in Reddit’s sale, licensing, or sharing of user-generated content for AI model training purposes. This development comes as Reddit prepares for its upcoming IPO.
Reddit’s Response
Despite the inquiry, Reddit maintains that it has not engaged in any deceptive practices. The company reassures that it is cooperating with the FTC’s requests for information and documents to clarify its data-sharing strategies. Reddit aims to be transparent throughout the inquiry process.
Public Offering Details
As Reddit gears up for its IPO, the company plans to offer shares priced between $31 and $34 each. This move could potentially value Reddit at approximately $6.5 billion, showcasing investor interest in the social media platform’s future growth prospects.
The FTC inquiry adds a layer of complexity to Reddit’s IPO journey, highlighting the importance of data privacy and transparency in today’s digital landscape. Reddit’s response to the inquiry will likely shape how other tech companies approach data-sharing practices moving forward.
