Reddit is preparing to make its initial public offering filing this week, potentially revealing its financials for the first time to potential investors. The company, valued at about $10 billion in a funding round in 2021, plans to sell about 10% of its shares in the offering. This deal comes as AI model makers are increasingly partnering with content owners to diversify training data beyond large scrapes of the internet.
Key takeaways:
- Google has signed a deal with Reddit to use the social media platform's data for various purposes, including training AI models, and will pay Reddit $60 million annually for this data license.
- The partnership will increase the amount of Reddit content and information in Google's products, and Google now has access to Reddit's Data API, which delivers real-time, structured, unique content.
- Matthew Sag, a professor of law, AI, ML and data science at Emory University Law School, believes that community-based platforms like Reddit and Twitter could start charging for access to training AI data, which they have already begun to do.
- Reddit is preparing to make its initial public offering filing this week, which would detail its financials for the first time to potential investors. The company, which was valued at about $10 billion in a funding round in 2021, is seeking to sell about 10% of its shares in the offering.