The Federal Trade Commission (FTC) will allow artificial intelligence (AI) companies to use user-generated content to train their software, according to the social media company's Friday filing with the Securities and Exchange Commission (SEC). The company is reportedly looking into Reddit's plans.
The investigation comes just days before Reddit was scheduled to complete its initial public offering, which it filed for last month.
According to an SEC filing, Reddit said it received a letter from the FTC on Thursday, but the company clarified that it was “not surprised” by the investigation.
Reddit said the FTC is “conducting a private investigation focused on the sale, licensing, or sharing with third parties of user-generated content to train AI models.” Given the novel nature of these technologies and commercial arrangements, it is not surprising that the FTC has expressed interest in this area. ”
“We do not believe that we have engaged in unfair or deceptive trade practices.”
Reddit announced in February that it would allow Google to train its AI models. The partnership, announced in February and worth a total of $60 billion, will give Google access to the company's data application programming interfaces (APIs).
The research disclosure was an amendment to the company's IPO filing.
This investigation does not imply a full-scale investigation into social media companies.
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