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Reddit sells training data to unnamed AI company ahead of IPO

Feb 20, 2024 - arstechnica.com
Reddit has reportedly signed a $60 million per year contract with an undisclosed AI company to allow it to train its models on the site's content. This move comes as Reddit prepares for its initial public offering (IPO), which could take place as soon as next month. The deal was initially revealed to potential investors in 2024, and it is speculated that it could serve as a model for future agreements with other AI companies.

Reddit's decision to charge AI companies for access to its nearly two decades of user-generated content could potentially increase the value of its IPO, which is estimated to be worth $5 billion. The company generated more than $800 million in revenue in 2023, a 20% increase from its 2022 figures. The deal could mean that if you've ever posted on Reddit, your content may be used to train future AI models.

Key takeaways:

  • Reddit has signed a contract allowing an unnamed AI company to train its models on the site's content, a move that comes as Reddit nears its initial public offering (IPO).
  • The deal, which is reported to be worth $60 million a year, was initially revealed in 2024 to potential investors of an anticipated IPO.
  • Reddit's CEO Steve Huffman has previously stated plans to charge AI companies for access to its almost two decades' worth of human-generated content.
  • Despite drama in the previous year, Reddit pulled in more than $800 million in revenue in 2023, growing about 20 percent over its 2022 numbers.
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