Reddit's Sale of User Data for AI Training Draws FTC Inquiry

Reddit said ahead of its IPO next week that licensing user posts to Google and others for AI projects could bring in 203 million of revenue over the next few years. The community-driven platform was forced to disclose Friday that US regulators already have questions about that new line of business. In a regulatory filing, Reddit said that it received a letter from the US Federal Trade Commision on Thursday asking about "our sale, licensing, or sharing of user-generated content with third parties to train AI models." The FTC, the US government's primary antitrust regulator, has the power to sanction companies found to engage in unfair or deceptive trade practices. Reddit isn't alone in trying to make a buck off licensing data, including that generated by users, for AI.