In response to unauthorized use of its content, Reddit announced changes to its API last year, putting its data behind a paywall. The move was met with protests from the site's volunteer moderators who feared it would target smaller developers. Reddit reportedly made over $800 million in revenue last year, a 20% increase from 2022, and is advised to seek a valuation of at least $5 billion in its IPO. The deal with Google is the latest in a series of data licensing agreements between AI companies and content providers.
Key takeaways:
- Reddit is partnering with Google to allow the search engine to train its AI models with Reddit's user-generated content, in a deal reportedly worth $60 million per year.
- Reddit had previously announced it would start charging companies that use its data to train AI without returning any value, and made changes to its API to put its data behind a paywall.
- The deal comes amid concerns about how AI companies use and profit from user-generated content, with the creators of that content not receiving any of the profits.
- This partnership is part of a series of data licensing deals between AI companies and content providers, with AI companies seeking content to train their models.