Reddit indicators AI content material licensing cope with Google; An estimated worth of $60 million per yr

Social media platform Reddit concluded an settlement with Google to make its content material obtainable for coaching the search engine big’s synthetic intelligence fashions, three individuals aware of the matter mentioned.

The contract with Alphabet-owned Google is value round $60 million (round Rs. 497 crore) per yr, in keeping with one of many sources.

The deal highlights how Reddit, which is gearing up for a high-profile inventory launch, is searching for to generate new income amid fierce competitors for advert {dollars} from firms like Tic Tac And Meta Fb of the platform.

The sources weren’t licensed to talk to the media and declined to be recognized.

Reddit and Google declined to remark.

Bloomberg beforehand reported the Reddit content material deal with out naming the client.

Final yr, Reddit introduced that it will cost firms for entry to its utility programming interface (API), the means by which it distributes its content material. The cope with Google is the primary reported cope with a significant AI enterprise.

San Francisco-based Reddit, which has been contemplating an IPO for greater than three years, is making ready to file its IPO this week, which might element its financials to potential IPO traders for the primary time.

The file might be obtainable as early as Thursday, two of the sources mentioned.

The corporate, which was valued at round $10 billion (roughly Rs. 82,897 crore) in a 2021 funding spherical, is seeking to promote round 10% of its shares within the providing, has beforehand reported Reuters.

Reddit’s IPO would mark the primary IPO of a significant social media firm since Pinterest took its shares public in 2019.

AI mannequin creators have been busy hanging offers with content material homeowners in latest months, aiming to diversify their coaching information past huge swathes of the Web. This follow poses many potential copyright points, as many content material creators have alleged that their content material was used with out permission.

Based in 2005 by internet developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit is thought for its many area of interest newsgroups, a few of which have tens of tens of millions of members.

© Thomson Reuters 2024