Tuesday, July 15, 2025
LBNN
  • Business
  • Markets
  • Politics
  • Crypto
  • Finance
  • Energy
  • Technology
  • Taxes
  • Creator Economy
  • Wealth Management
  • Documentaries
No Result
View All Result
LBNN

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

Simon Osuji by Simon Osuji
March 15, 2024
in Artificial Intelligence
0
Reddit’s Sale of User Data for AI Training Draws FTC Inquiry
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


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. The idea of licensing user-generated content for AI projects has drawn questions from lawmakers and rights groups about privacy risks, fairness, and copyright.

Reddit isn’t alone in trying to make a buck off licensing data, including that generated by users, for AI. Programming Q&A site Stack Overflow has signed a deal with Google, the Associated Press has signed one with OpenAI, and Tumblr owner Automattic has said it is working “with select AI companies” but will allow users to opt out of having their data passed along. None of the licensors immediately responded to requests for comment. Reddit also isn’t the only company receiving an FTC letter about data licensing, Axios reported on Friday, citing an unnamed former agency official.

It’s unclear whether the letter to Reddit is directly related to review into any other companies.

Reddit said in Friday’s disclosure that it does not believe that it engaged in any unfair or deceptive practices but warned that dealing with any government inquiry can be costly and time-consuming. “The letter indicated that the FTC staff was interested in meeting with us to learn more about our plans and that the FTC intended to request information and documents from us as its inquiry continues,” the filing says. Reddit said the FTC letter described the scrutiny as related to “a non-public inquiry.”

Reddit, whose 17 billion posts and comments are seen by AI experts as valuable for training chatbots in the art of conversation, announced a deal last month to license the content to Google. Reddit and Google did not immediately respond to requests for comment. The FTC declined to comment.

AI chatbots like OpenAI’s ChatGPT and Google’s Gemini are seen as a competitive threat to Reddit, publishers, and other ad-supported, content-driven businesses. In the past year the prospect of licensing data to AI developers emerged as a potential upside of generative AI for some companies.

But the use of data harvested online to train AI models has raised a number of questions winding through boardrooms, courtrooms, and Congress. For Reddit and others whose data is generated by users, those questions include who truly owns the content and whether it’s fair to license it out without giving the creator a cut. Security researchers have found that AI models can leak personal data included in the material used to create them. And some critics have suggested the deals could make powerful companies even more dominant.



Source link

Related posts

How to use AI to start an online business

How to use AI to start an online business

July 15, 2025
Tech Billionaires Back Erebor in the Wake of Silicon Valley Bank Collapse

Tech Billionaires Back Erebor in the Wake of Silicon Valley Bank Collapse

July 15, 2025
Previous Post

Toyota approves SVI’s Hilux armouring package, making it available through dealer network

Next Post

Solana (SOL) Forecasted To Hit $300: Here’s When

Next Post
Solana (SOL) Forecasted To Hit $300: Here’s When

Solana (SOL) Forecasted To Hit $300: Here's When

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Benin and Ghana Announce Free Roaming Initiative to Slash Communication Costs

Benin and Ghana Announce Free Roaming Initiative to Slash Communication Costs

1 year ago
The Lush Bath Bot Is a Vegan, Recyclable Floating Speaker That’s Out to Make a Point

The Lush Bath Bot Is a Vegan, Recyclable Floating Speaker That’s Out to Make a Point

6 months ago
Fire Breaks Out at Chevron’s Platform off Angola, Injuring 17

Fire Breaks Out at Chevron’s Platform off Angola, Injuring 17

2 months ago
Historic White House Gathering Celebrates Descendants of Civil Rights Icons

Historic White House Gathering Celebrates Descendants of Civil Rights Icons

1 year ago

POPULAR NEWS

  • Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    0 shares
    Share 0 Tweet 0
  • When Will SHIB Reach $1? Here’s What ChatGPT Says

    0 shares
    Share 0 Tweet 0
  • The world’s top 10 most valuable car brands in 2025

    0 shares
    Share 0 Tweet 0
  • Top 10 African countries with the highest GDP per capita in 2025

    0 shares
    Share 0 Tweet 0
  • Global ranking of Top 5 smartphone brands in Q3, 2024

    0 shares
    Share 0 Tweet 0
  • Privacy Policy
  • Contact

© 2023 LBNN - All rights reserved.

No Result
View All Result
  • Home
  • Business
  • Politics
  • Markets
  • Crypto
  • Economics
    • Manufacturing
    • Real Estate
    • Infrastructure
  • Finance
  • Energy
  • Creator Economy
  • Wealth Management
  • Taxes
  • Telecoms
  • Military & Defense
  • Careers
  • Technology
  • Artificial Intelligence
  • Investigative journalism
  • Art & Culture
  • Documentaries
  • Quizzes
    • Enneagram quiz
  • Newsletters
    • LBNN Newsletter
    • Divergent Capitalist

© 2023 LBNN - All rights reserved.