Reddit receives FTC inquiry on AI-related deals ahead of IPO

:Reddit acknowledged on Friday the U.S. Federal Trade Commission is conducting an inquiry involved on the firm’s sale, licensing and sharing of user-generated bellow with third occasions to put collectively artificial intelligence units.

“Given the radical nature of those applied sciences and industrial arrangements, we’re now not shocked that the FTC has expressed hobby on this space. We attain now not think that we now have engaged in any unfair or unfaithful alternate note,” per Reddit.

The firm acknowledged it had purchased the letter from the FTC on March 14.

In February, Reuters reported social media platform Reddit struck a tackle Alphabet’s Google to uncover its bellow on hand for coaching the search engine extensive’s AI units.

The contract with Google is price about $60 million per 12 months and showcases how Reddit is looking out out for to generate contemporary earnings amid fierce competitors for marketing greenbacks from the likes of TikTok and Meta Platform’s Facebook.

Earlier this week, Reddit acknowledged it became as soon as aiming for a valuation of as a lot as $6.4 billion in its U.S. preliminary public offering as it nears one amongst potentially the most anticipated stock market debuts of the previous few years.