The FTC Investigates Reddit’s AI Licensing Agreements

The FTC Zooms In on Reddit’s AI Ventures

Hey, guess what’s buzzing in the tech grapevine? The Federal Trade Commission (FTC) is rolling up its sleeves and diving deep into Reddit’s AI licensing deals. Yes, you heard it right! According to official documents Reddit has filed with the Securities and Exchange Commission, there’s some serious curiosity around the company’s AI maneuvers, especially now when it’s gearing up for its Initial Public Offering. Imagine getting a “we need to talk” note from the FTC because you’re doing something as epic as revolutionizing AI with user-generated content – that’s Reddit for you right now!

Why the FTC Intrigue, Though?

So, why is the FTC giving Reddit the eye? It’s a little hazy at the moment, but it looks like they’re just at the starting line of their investigation. Reddit spilled the beans in a filing, saying, “On March 14, 2024, the FTC dropped us a line, hinting they’re peeking into our AI deals concerning sale, licensing, or sharing of user content with third parties to power AI models.” Given how AI technology and commercial deals are practically the Wild West right now, Reddit’s like, “Yeah, we saw that coming.” But hey, they’re standing their ground, confident they haven’t stepped on any legal toes.

The Big Picture for Reddit

Diving further into Reddit’s strategies, their deal to license crunch loads of user-generated content isn’t just a side gig; it’s central to their expansion plans. On D-day of their IPO filing, they announced a whopping deal with Google, where Google gets to train its AI models using Reddit data. We’re talking about a deal valued at about $60 million here. So, it’s clear Reddit’s not just dipping a toe but possibly their entire leg into the AI pool.

FTC’s Broader Gaze

And it’s not just Reddit under the FTC’s microscope. According to Axios, other companies have gotten their share of “Dear John” letters from the FTC. It seems the regulatory body is quite captivated by the generative AI scene and how big tech ties into it. With the FTC already sniffing around the big leagues like Microsoft, Alphabet, and Amazon for their AI startup investments, it seems like we’re on the brink of some major regulatory tea being spilled in AI Town.

So, there you have it. As Reddit marches towards going public, it’s juggling its groundbreaking AI deals with a bit of regulatory attention. It’s a heck of a ride, and we’re here for all the twists and turns. Stay tuned, because this is just the beginning!

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