SAN FRANCISCO: As per three people acquainted with the matter, social media framework Reddit has reached an agreement with Google (GOOGL.O) and has launched a new tab wherein its content can be utilized to train the artificial intelligence models of the search engine giant. One of the informants claims that the annual contract value with Google, a division of Alphabet, is approximately $60 million.
The agreement highlights how Reddit, which is getting ready to debut on the stock market, is trying to make a living in the face of intense competition from companies like Facebook’s new tab and TikTok for advertising dollars.
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The sources declined to be named and were not authorized to speak with the media.
Both Google and Reddit declined to comment. Reddit’s content deal was previously reported by Bloomberg, but the buyer was not disclosed. The application programming interface (API), which Reddit uses to distribute its content, will now be charged for by businesses, the company announced last year. Its first known agreement with a significant AI company is the one with Google.
Based in San Francisco After considering a stock float for over three years, Reddit is getting ready to file for an IPO this week. In this filing, it will provide potential investors with its financial details for the first time.
According to two of the sources, the filing might be accessible as early as this Thursday. As per earlier reports from the news website, the company aims to sell roughly 10% of its ownership stake in the offering. The company was valued at approximately $10 billion during its latest funding round in 2021. With Reddit’s IPO, a significant social media company would have gone public for the first time since Pinterest listed its stock in 2019.
Artificial intelligence model creators have been busy closing agreements with creators of content in the past few months in an effort to expand the variety of training data they have available beyond extensive internet scrapes. Due to the numerous claims made by content creators that their work was used without authorization, this practice is fraught with possible copyright violations.
Reddit, which was started in 2005 by web designer Steve Huffman and businessman Alexis Ohanian, is well-known for its numerous specialized forums, some of which have tens of millions of participants.
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