April 14, 2024
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Reddit Strikes $60 Million Deal with Google for AI Model Training

Reddit, the popular social media platform, has entered into a significant partnership with Google, allowing the tech giant to use its extensive content library for artificial intelligence model training. According to sources familiar with the matter, this deal is valued at approximately $60 million annually. This strategic move comes as Reddit is gearing up for a much-anticipated stock market debut, aiming to diversify its revenue streams amidst the intensifying competition for advertising revenue from other social media giants such as TikTok and Facebook.

The agreement marks the first of its kind between Reddit and a major AI company, following Reddit’s announcement last year to monetize access to its application programming interface (API). This initiative is part of Reddit’s broader strategy to leverage its rich, community-driven content for business growth. With its plans to go public, Reddit is set to reveal its financial details to prospective investors, potentially as early as this week, highlighting its valuation and share offering plans.

Founded in 2005, Reddit has established itself as a hub for diverse and niche communities, boasting tens of millions of members across its various discussion groups. This deal with Google underscores the increasing demand among AI developers for high-quality, diverse data sources to train their models, moving away from the traditional method of large-scale internet scrapes which have raised copyright concerns among content creators.

Pic Courtesy: google/ images are subject to copyright

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