FTC probing Reddit plan to let AI firms use user-generated content to train software 

The Federal Trade Commission (FTC) is probing Reddit’s plan to let artificial intelligence (AI) firms utilize user-generated content to train their software, according to the social media company’s Securities and Exchange Commission (SEC) filing Friday. 

The inquiry comes just days before Reddit is slated to complete its initial public offering, after filing for it last month. 

Reddit said it received the letter from the FTC Thursday, according to the SEC filing, but clarified the company was not “surprised” by the inquiry.  

Reddit said the FTC is conducting “a non-public inquiry focused on our sale, licensing, or sharing of user-generated content with third parties to train AI models. Given the novel nature of these technologies and commercial arrangements, we are not surprised that the FTC has expressed interest in this area.”

“We do not believe that we have engaged in any unfair or deceptive trade practice.” 

Reddit announced in February that it would allow Google to train its AI models. The deal was announced in February, is worth $60 billion and would let Google use its data application programming interface (API). 

The disclosure of the probe was an amendment to the company’s IPO filing. 

The probe does not mean an entire investigation will be deployed on the social media company.