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Technology platform Reddit said the Federal Trade Commission is investigating its agreements to license data to artificial intelligence companies seeking to train models.
The company disclosed the investigation in an SEC filing Friday afternoon, adding that it was contacted about the investigation on Thursday.
“On March 14, 2024, we received a letter from the Federal Trade Commission (“FTC”) informing us that FTC staff has I have been notified that a public investigation is underway. “Parties that train AI models,” his SEC filing states. “Given the novel nature of these technologies and commercial arrangements, we are not surprised that the FTC has expressed interest in this area. We do not believe that we have engaged in any unfair or deceptive trade practices. The letter states that FTC staff is interested in meeting with us to learn more about our plans and that they intend to request information and documents from us as the FTC continues its investigation. was shown.”
Reddit filed a Form S-1 with the SEC last month, an important step before launching its widely anticipated initial public offering. The filing includes a pitch to investors that relies heavily on OpenAI CEO Sam Altman's large stake (about 9 percent) and the potential revenue from generative AI training. Many details about the company have been revealed. Being with Google.
“Our content is particularly important for artificial intelligence ('AI'), which is a fundamental part of how well leading large-scale language models ('LLMs') are trained,” the company said. -1 states. “Reddit data is constantly growing and regenerating as users interact. As the world becomes increasingly data-driven, we deliver solutions that are human and experience-focused. We hope that data dominance and intellectual property will continue to be key elements in future LLM training.”
The company announced Friday that it is adjusting its risk factors in further consideration of the FTC investigation.
“Regulatory engagements may be lengthy and unpredictable,” the filing states. “Any regulatory involvement could incur significant costs to us, and could also result in reputational damage, fines, or the discontinuance of our products, services, features, or capabilities. or changes may occur or require changes to our policies, or practices may divert management and other resources from our business or otherwise affect our business, management, or practices. Our results of operations, financial condition and prospects could be adversely affected.”
Data licensing for generative AI models is a hot topic in Hollywood, as Hollywood films and photos could become valuable as video and photo models evolve. Similarly, data from news outlets is considered useful for LLMs that require real-time information.