On Friday, Reddit said that the Federal Trade Commission of the United States is conducting an investigation into the company's practices regarding the sale, licensing, and sharing of user-generated material with third parties for the purpose of training applications that use artificial intelligence.
It does not come as a surprise to us that the Federal Trade Commission has shown interest in this field, given the innovative nature of the technology and business structures we are discussing
According to Reddit, "We do not believe that we have engaged in any unfair or deceptive trade practice since we have been in business."
On March 14, the firm stated that it had received the letter from the Federal Trade Commission.
vFebruary that the social media network Reddit had reached an agreement with Alphabet's Google (GOOGL.O), opens new tab, to make its information accessible for the purpose of training the artificial intelligence models of the search engine giant.
It is clear that Reddit is looking to generate new revenue in the face of intense competition for advertising money from platforms such as TikTok and Meta Platform's (META.O), opens new tab Facebook.
vThe contract with Google is worth approximately sixty million dollars per year and demonstrates how Reddit is attempting to do so.
At the beginning of this week, Reddit said that it was reaching for a valuation of up to $6.4 billion in its first public offering (IPO) in the United States. This comes as the company is getting closer to one of the most anticipated debuts on the stock market in the previous several years.
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