Reddit, the popular social media platform, is facing scrutiny from the Federal Trade Commission over its plans to license its users' content to artificial intelligence companies. The inquiry was revealed in a filing with the Securities and Exchange Commission on Friday, following a letter from the FTC dated Thursday. Reddit stated that the FTC is conducting a non-public inquiry into the company's sale, licensing, or sharing of user-generated content for AI training purposes.

The company, which is preparing for its highly anticipated initial public offering, has recently entered into a $60 million deal with Google to provide access to its platform data for AI model training. This deal will also give Reddit access to Google's AI models for enhancing its internal site search and other features. Despite the FTC inquiry, Reddit maintains that it has not engaged in any unfair or deceptive trade practices.

The disclosure of the FTC inquiry comes as Reddit gears up to go public for the first time, with its IPO projected to value the platform at up to $6.4 billion. The company expects to price its shares between $31 and $34 each, potentially raising as much as $748 million from the offering. Reddit, along with some existing stockholders, plans to offer 22 million shares of its Class A stock.

As the first social media platform to go public in years, Reddit's IPO has garnered significant attention from investors and industry analysts. The outcome of the FTC inquiry and the success of its public offering will be closely watched as Reddit looks to capitalize on its user-generated content and AI partnerships.