Exclusive: Reddit Strikes AI Content Licensing Agreement with Google

By Maggie Last updated Feb 22, 2024

Reddit recently signed a lucrative deal with Google to provide training content for Google’s artificial intelligence models, sources familiar with the matter said. The contract, which is worth up to $60 million a year, reflects Reddit’s strategy to grow revenue amid intense competition for ad revenue from platforms like TikTok and Meta Platform’s Facebook.

Since Reddit and Google declined to comment due to the confidentiality of the transaction, the person who published this information preferred to remain anonymous. Bloomberg had previously reported on the Reddit content but did not specify the recipient.

Last year Reddit announced its intention to monetize its application programming interface (API) from companies paying for access to its content distribution platform. The deal with Google marks Reddit’s first partnership with a major intelligence company.

San Francisco-based Reddit has been considering an IPO for more than three years and will file for an initial public offering (initial public offering) this week. The IPO document is expected to be released as early as Thursday, according to insiders, and will give potential investors an overview of Reddit’s financial performance.

According to reports, Reddit plans to sell up to 10% of its shares. It is estimated that the company’s value will be $10 billion after the 2021 financial round. If successful, Reddit’s IPO would be the first major social media company to go public since Pinterest’s IPO in 2019.

Last month, the founders of the intellectual property model reached agreements with service providers to launch a different business. The tutorial goes beyond ordinary web scraping. However this approach raises concerns about copyright infringement, as many creators criticize illegal use of their products.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is known for its diverse discussion communities, some of which have millions of members.