Summary
Reddit is under investigation by the FTC for its data licensing practices for AI training, disclosed in an amended S-1 registration statement. The investigation follows a $60 million deal with Google for user data access. Reddit sees its data as key for AI training but faces concerns from privacy advocates and regulators. Reddit has also invested in Bitcoin and Ethereum as part of its balance sheet strategy. Despite confidence that they have not broken any laws, Reddit acknowledges the FTC inquiry could be lengthy and unpredictable.
Key Points
1. Reddit is under investigation by the Federal Trade Commission (FTC) over its data licensing practices for artificial intelligence training.
2. The disclosure of the investigation was included in an amended S-1 registration statement filed with the Securities and Exchange Commission.
3. Reddit’s $60 million per year deal with Google for access to user data has deepened its relationship with the tech giant and raised concerns among privacy advocates and regulators.