Reddit is under FTC inquiry for AI-related deals ahead of $6.4 billion IPO

From Nasdaq:

Reddit is under investigation by the U.S. Federal Trade Commission for its handling of user-generated content shared with third parties. The company denies any unfair or deceptive practices. Reddit received the FTC letter on March 14. In a $60 million deal with Google, Reddit is providing content for AI training, showing its revenue-generating efforts amidst competition.

Reddit aims for a valuation of up to $6.4 billion in its upcoming U.S. IPO. The company’s deal with Google to train AI models is part of its strategy to boost revenue. Reddit seeks to stand out in the competitive landscape against platforms like TikTok and Meta Platforms’ Facebook. The FTC inquiry reflects growing interest in tech company practices.



Read more at Nasdaq: Reddit receives FTC inquiry on AI-related deals ahead of IPO