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>Last I checked, Reddit was hosted on private servers.

I'm pretty sure Reddit is hosted on AWS.

http://www.redditblog.com/2009/11/moving-to-cloud.html

http://thenextweb.com/insider/2015/09/20/amazon-web-services...

Why is that distinction important?

If you host on someone else's servers, you need to follow their TOS for what you can and can't host. For instance, lots of places don't like hosting porn.

I don't know Amazon's TOS very well, nor am I implying it comes in to play here. I just remembered seeing some posts about Reddit being hosted on AWS.

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