The platform says it stands to make more than $200 million in coming years from Google and other companies that want user comments to feed AI projects. Regulators have questions.
In a regulatory filing, Reddit said that it received a letter from the US Federal Trade Commision on Thursday asking about “our sale, licensing, or sharing of user-generated content with third parties to train AI models.” The FTC, the US government’s primary antitrust regulator, has the power to sanction companies found to engage in unfair or deceptive trade practices.
Security researchers have found that AI models can leak personal data included in the material used to create them. And some critics have suggested the deals could make powerful companies even more dominant. The Google deal was one of a “small number” of data licensing wins that Reddit has been pitching to investors as it seeks to drum up interest for shares being sold in its IPO. Reddit CEO Steve Huffman in the investor pitch described the company’s data as invaluable.
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