"Reddit's Lucrative AI Deals: $203M in Training Fees and $60M Google Partnership"
TL;DR
Reddit has disclosed in a recent SEC filing that it will earn $203 million from licensing its vast corpus of posts and comments to AI companies over the next three years, with Google's deal estimated to be worth $60 million a year. The company acknowledges the legal uncertainty surrounding AI companies' use of its data for training purposes and the potential for continued unauthorized scraping, but also sees these licensing agreements as potentially influencing legal battles over data scraping. Additionally, Reddit views large language models as both a revenue opportunity and a competitive threat, as it prepares for its upcoming IPO.
- Reddit cashes in on AI gold rush with $203M in LLM training license fees Ars Technica
- Reddit strikes $60M deal allowing Google to train AI models on its posts, unveils IPO plans The Associated Press
- Social network Reddit's IPO is an 'AI play,' says Herb Greenberg CNBC
- Google cut a deal with Reddit for AI training data The Verge
- Google Will Scrape Reddit Communities For AI Parts in $60 Million Deal: Report Gizmodo
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