Reddit’s User Data Sale for AI Training Under FTC Scrutiny

Reddit has entered into a licensing deal with an unnamed AI company, allowing access to its user-generated content for AI model training. The deal, worth about $60 million annually, is part of Reddit’s preparations to go public. This move has raised legal questions as most AI companies have traditionally trained their data on the open web without seeking permission. The news follows an October story that Reddit had threatened to cut off Google and Bing’s search crawlers if it couldn’t make a training data deal with AI companies. The company’s year-over-year revenue was up by 20 percent by the end of 2023, but it was still $200 million shy of a $1 billion target it had set two years prior.

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