Reddit Is Said to Sign AI Content Licensing Deal Ahead of IPO
Feb 17, 2024 - news.bensbites.co
Reddit Inc. has reportedly signed a contract allowing a company to train its artificial intelligence models on the platform's content. This move comes as Reddit nears the potential launch of its long-awaited initial public offering (IPO). The San Francisco-based firm has informed prospective investors in its IPO about the deal, which is worth approximately $60 million on an annualized basis.
The agreement, signed earlier this year, is with an unnamed large AI company. This deal could potentially serve as a model for future contracts of a similar nature. The specifics of the agreement, however, have not been disclosed.
Key takeaways:
Reddit Inc. has signed a contract allowing a company to train its artificial intelligence models on the platform’s content.
The deal is worth about $60 million on an annualized basis.
The information was disclosed to prospective investors in Reddit's upcoming IPO.
The agreement could serve as a model for future contracts of a similar nature with other AI companies.
