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Reddit stated Friday that the Federal Commerce Fee despatched a letter to the corporate about it is data-licensing enterprise associated to the coaching of third-party synthetic intelligence techniques.
“On March 14, 2024, we acquired a letter from the FTC advising us that the FTC’s workers is conducting a personal inquiry targeted on our sale, licensing, or sharing of user-generated content material with third events to coach AI fashions,” Reddit stated in an up to date IPO prospectus.
Though Reddit’s core enterprise depends on internet marketing, the corporate detailed different doable monetization efforts, and is engaged within the “early levels” of its “knowledge licensing efforts,” the submitting stated.
The corporate stated it believes that “the chance doesn’t battle with our values and the rights of our Redditors,” which refers back to the firm’s person base that features moderators.
“These packages could topic us to evolving approaches to the regulation of this knowledge and implicates complicated and growing knowledge privateness and knowledge safety, misappropriation, and mental property legal guidelines, guidelines, and laws,” Reddit stated.
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