Reddit has granted Google a license to use its content for AI system training. Through the agreement, which is estimated to be worth $60 million yearly, Google will have access to Reddit comments and posts for the purpose of enhancing its AI models.
Reddit, which has more than 50 million active users every day, provides a wealth of data for improving natural language AI. Reddit’s corpus will be utilized by Google to improve search and other applications.
In response to some content owners’ concerns, Google is able to expand training beyond site scraping thanks to the licensing arrangement.
As Reddit moves closer to its anticipated IPO this year, it provides a significant source of income for the firm. Recent funding estimates have given Reddit a worth of above $10 billion.
The agreement with Google was reached just before Reddit’s official launch. This week is when the company is supposed to file the IPO paperwork.
For years, Reddit has considered going public as a way to accelerate its growth. Investors will get their first glimpse at Reddit’s much awaited financials with this filing.
In 2024, social media companies hoping to enter public markets will be watching this IPO closely.
Large tech companies have increased their efforts to license vast amounts of data as AI models get more sophisticated. Content providers and Microsoft, Meta, and other parties have struck agreements.
The partnerships, according to critics, make it possible to get around copyright restrictions. Proponents assert that they support paying content creators fairly, though.
The agreement between Reddit and Google is among the biggest for AI content. The collaboration gives the discussion about data usage new life.
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