Social platform Reddit has entered into an agreement with Google to make its content available to train the search giant's artificial intelligence models. According to sources, the contract with Google (Alphabet) is worth about $60 million per year.
The deal underscores how Reddit, which is gearing up for a high-profile stock market launch, is seeking to generate new revenue in the face of fierce competition from services such as TikTok and Meta, Reuters reports. The sources were not authorized to speak to the media and declined to give their names. Reddit and Google declined to comment. Last year, Reddit said it would charge companies for access to its application programming interface (API), the means through which it distributes its content. The Google deal could be the first deal with a major artificial intelligence company. San Francisco-based Reddit has been considering going public for more than three years and is preparing to file for an initial public offering this week, in which it will detail its financials for the first time to potential IPO investors. The documents could be available as early as Thursday, two of the sources said. The company was valued at about $10 billion during a funding round in 2021, seeking to sell about 10% of its shares during the offering. Reddit's entry into the stock market will be the first IPO of a major social network since Pinterest went public in 2019. In recent months, artificial intelligence model developers have been busy striking deals with content owners as they look to diversify their training data beyond large chunks of the internet. This practice is rife with potential copyright issues, as many content creators claim that their content has been used without permission.
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