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.”

    • mods_are_assholes@lemmy.world
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      9 months ago

      capitalism rewards the grifter and destroyer when not tightly controlled by regulation.

      Our current grifter economy was seeded in Reagan’s radical deregulation. And we haven’t even hit the worst of it yet.

    • Breezy@lemmy.world
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      9 months ago

      I thought he said the company wasnt profitable, how does he get almost 200 million dollars then?

      • metallic_z3r0@infosec.pub
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        9 months ago

        It’s $193M in stock, which can only be cashed out once Reddit IPOs, thus the drive to do so. Aside from that he gets a “mere” $600k/yr. He can probably borrow against that to a certain point, but I’m not sure a bank would value assets that can’t be liquidated.