Reddit has been licensing its data to other companies for years, primarily to help them understand online discussions about their brands. Recently, the company has considered selling data to algorithmic traders. Licensing for AI-related purposes is a newer venture for Reddit, which began after realizing its hosted conversations could train AI models. In July, Reddit introduced fees for large-scale access to user posts and comments, leading to user protests and potential risks for its upcoming trading debut.
Key takeaways:
- Reddit has been licensing its data to other companies, including Google, as part of its new business strategy, with CEO Steve Huffman describing the company's data as invaluable for the training of future AI systems.
- Google vice president Rajan Patel stated that access to Reddit's data would provide valuable new information and help Google better understand Reddit content for more accurate and relevant use.
- The FTC has shown concern about data sharing in the AI market, questioning companies like Microsoft, OpenAI, Amazon, Google, and AI chatbot maker Anthropic about their partnerships and potential unfair competition.
- Reddit introduced fees for large-scale access to user posts and comments in July, which led to user protests and the shutdown of free apps and add-ons for Reddit. This potential for further user protests was disclosed as a main risk to potential investors ahead of Reddit's trading debut.