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US agency investigates Reddit’s AI deal with Google and other companies | – Times of India



The US Federal Trade Commission (FTC) has launched an investigation into Reddit‘s practice of licensing user-generated content to artificial intelligence (AI) firms. This disclosure was made just before the company’s highly anticipated IPO, as reported by Axios.
In the last few months, Reddit entered into agreements with major tech firms, including a reported $60 million deal with Google to use Reddit data to train its AI models.
The FTC notified Reddit that it is “conducting a non-public inquiry focused on our sale, licensing, or sharing of user-generated content with third parties to train AI models.” The regulator is also expected to request a meeting with Reddit, along with various documents and information related to these deals.
Reddit says that it is “not surprised” by the probe, and clarified that it does not believe it has engaged in any unfair or deceptive trade practices, but it is not surprised by the FTC’s interest given the uniqueness of these agreements. According to a former FTC official, Reddit is not the only company receiving these “hold letters,” indicating that the FTC is casting a wide net in its investigation.
The timing of the FTC’s inquiry is significant because Reddit has been promoting its AI licensing deals as a new revenue stream to potential investors before its IPO.

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