According to a statement released on Friday, Reddit announced that the Federal Trade Commission has initiated an examination into the platform’s practice of selling, licensing, or sharing user-generated content with external entities to assist in the development of artificial intelligence algorithms.

On Friday, the company revealed the investigation in a report to the Securities and Exchange Commission, referring to a letter from the Federal Trade Commission dated Thursday.

Reddit stated in the filing that due to the unique nature of these technologies and business arrangements, they are not surprised that the FTC is showing interest in this area. They also stated that they do not consider their actions to be unfair or deceptive in terms of trade practices.

Similar to other social media platforms, Reddit has shown interest in potential partnerships where AI corporations can pay for access to archives of human-generated text. This allows AI models to improve their skills in communication, responding to inquiries, and creating written content and visuals upon request.

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On Friday, Reddit revealed that they are getting ready to offer shares to the public for the first time. They also submitted paperwork on Monday that estimated the value of their initial public offering to be up to $6.4 billion, making the platform worth as much as 18 years.

Source: wral.com