Reddit has agreed to license its content to Google for training artificial intelligence systems. The deal, valued at around $60 million annually, will provide Google access to Reddit posts and comments to improve its AI models.Â
With over 50 million daily active users, Reddit offers immense data for honing natural language AI. Google will tap into Reddit’s corpus to enhance search and other products.
Following some content owners’ objections, the licensing agreement helps Google expand training beyond web scraping.
For Reddit, it represents a major revenue stream as the company heads toward a planned IPO this year. Reddit has been valued at over $10 billion based on recent funding.
The deal with Google comes as Reddit is poised to make its public market debut. The company filed IPO paperwork this week.
Reddit has been exploring going public for years to boost growth. The filing will give investors the first look at Reddit’s long-awaited financials. The forthcoming IPO will be a bellwether for social media companies looking to tap into public markets in 2024.
As AI models grow more advanced, big tech firms have accelerated efforts to license troves of data. Microsoft, Meta, and others have signed agreements with content providers
Critics argue the deals enable circumventing copyright laws. However, proponents claim they promote properly compensating content creators.
Reddit’s arrangement with Google represents one of the largest AI content deals. The partnership provides fresh momentum to conversations around data usage
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