Reddit is under FTC investigation concerning its data licensing practices as it approaches its IPO on March 21.

The focus of the inquiry is Reddit's new business venture involving licensing user-generated data to third-party AI models.

Potential effects of the FTC investigation on Reddit's IPO are unclear, but such probes can delay and complicate the process.

Reddit's $60 million annual partnership with Google for AI model training is under scrutiny from privacy advocates and regulators.

Despite concerns, the Google partnership is anticipated to benefit Reddit financially, with an estimated $200 million revenue over three years.

Reddit's interest in the AI market, which is expected to reach $1 trillion by 2027, coincides with its investments in cryptocurrencies like Bitcoin and Ethereum.