Reddit Strikes $60 Million Deal with Google to Train AI Models on Its Content | BetaVersa - BetaVersa
March 28, 2024

Reddit Strikes $60 Million Deal with Google to Train AI Models on Its Content | BetaVersa

2 min read

Reddit Strikes $60 Million Deal with Google to Train AI Models on Its Content

Reddit and Google have entered into a licensing agreement that allows Google to utilize Reddit’s content for training its artificial intelligence models, according to sources familiar with the matter. The deal, valued at approximately $60 million annually, highlights Reddit’s efforts to generate additional revenue as it prepares for its highly anticipated stock market debut. The agreement comes at a time when Reddit faces intense competition for advertising revenue from platforms like TikTok and Meta Platform’s Facebook.

While Reddit and Google have not officially commented on the deal, reports indicate that Reddit’s decision to monetize its content through licensing agreements represents a shift in strategy. Last year, Reddit announced plans to charge companies for access to its application programming interface (API), marking its first reported deal with a major AI company.

As Reddit gears up for its initial public offering (IPO), expected to be filed this week, the company aims to sell about 10 percent of its shares, potentially valuing it at around $10 billion. If successful, Reddit’s IPO would be the first of its kind for a major social media platform since Pinterest went public in 2019.

The partnership between Reddit and Google underscores the growing trend of AI model developers seeking diverse training data sources beyond traditional web scraping. However, such practices have raised concerns about potential copyright issues, as content creators often allege unauthorized use of their content.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has gained popularity for its diverse range of discussion groups, attracting millions of active users. As Reddit continues to evolve, its collaboration with Google signals a new chapter in its quest for innovation and revenue diversification.

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