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FTC Launches Inquiry Into Reddit's AI Deals, Ahead of IPO - Slashdot

 6 months ago
source link: https://tech.slashdot.org/story/24/03/15/2257216/ftc-launches-inquiry-into-reddits-ai-deals-ahead-of-ipo
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FTC Launches Inquiry Into Reddit's AI Deals, Ahead of IPO

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Days before Reddit's upcoming initial public offering (IPO), the company announced that the FTC has launched an inquiry into the company's licensing of user data to AI companies. Reddit says that it's "not surprised" by the FTC's inquiry, given the novel nature of these agreements. Axios reports: Reddit says it received a letter on Thursday, March 14, in which the FTC said it's "conducting a non-public inquiry focused on our sale, licensing, or sharing of user-generated content with third parties to train AI models." The FTC also is expected to request a meeting with Reddit, plus various documents and information. Reddit isn't the only company receiving these so-called "hold letters," according to a former FTC official who spoke with Axios on background.

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