Reddit signs AI training deal with Google – and why OpenAI's Altman could be the winner

Google has signed a deal with Reddit, reportedly worth $60 million annually, to use content from the platform to train and update its AI chatbots. The agreement, confirmed on Thursday, will allow Google to access Reddit's Data API, which provides real-time access to user-generated posts and comments. The deal is expected to benefit OpenAI boss Sam Altman, whose affiliated entities hold 8.7% of Reddit's shares. The announcement coincided with Reddit's filing for an initial public offering.

The deal does not change Google's use of publicly available content for training its AI models. Reddit, which started charging for API access last year, is seen as a valuable source of training data for AI chatbots. The site reported $804 million in annual revenue for 2023, a 20% increase from the previous year, and boasts 850 million monthly active users.

Key takeaways

Google has entered into a $60 million per year deal with Reddit to use its content for training and updating AI chatbots.
The deal allows Google to access Reddit's Data API, which provides real-time access to posts and comments on the site.
Reddit has also filed for an initial public offering, with entities affiliated with OpenAI boss Sam Altman holding 8.7 percent of shares already issued.
Despite the deal, Google will not start paying for all the data it uses to train its models, and will continue to use publicly available, crawlable content for indexing, training, or display in Google products.

Reddit signs AI training deal with Google – and why OpenAI's Altman could be the winner

Key takeaways

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