Reddit Receives FTC Inquiry On AI-related Deals Ahead of IPO

Reddit mentioned that the US Federal Trade Commission (FTC) is looking into how the company uses, sells, and shares the content its users create with other companies to train AI programs. Reddit stated they’re not surprised by the FTC’s interest since this is a new area and they don’t think they’ve done anything wrong.

They got the letter from the FTC on March 14th.

In February, news came out that Reddit made a deal with Google, the big search engine company. Reddit agreed to let Google use its content to teach its AI systems. This deal is worth about $60 million each year. It’s a big move for Reddit as it tries to make more money, especially with strong competition from platforms like TikTok and Facebook.

Reddit recently said it wants to be valued at around $6.4 billion when it goes public in the US. This is a big deal in the stock market world and lots of people are talking about it.

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