FTC inquiry into AI data licensing (licensing of user content for AI training)

On March 14, 2024, days before its IPO, Reddit received a letter from FTC staff advising that the agency was conducting a non-public inquiry into Reddit's sale, licensing, or sharing of user-generated content with third parties to train AI models. Reddit disclosed the inquiry the next day in an amended registration statement filed with the SEC. The matter followed Reddit's data-licensing agreements, including a roughly 60-million-dollar-per-year deal with Google, to supply content for AI training. Reddit stated it did not believe it had engaged in any unfair or deceptive trade practice and noted the inquiry could be unpredictable in scope and duration. No public enforcement outcome has been announced.