Google signs licensing agreement to train its AI models on Reddit content

Social media platform Reddit has struck a deal with Google to use its content to train the search engine giant’s artificial intelligence models, three people familiar with the matter said.

According to a source, the contract with Alphabet’s Google is worth about $60 million (approximately Rs. 497 crore) per year.

The deal highlights Reddit’s preparations for a high-profile listing as it seeks to generate new revenue amid fierce competition for advertising revenue from the likes of TikTok and Meta Platform’s Facebook.

The sources were not authorized to speak to the media and declined to be named.

Reddit and Google declined to comment.

Bloomberg previously reported the Reddit content deal but did not name the buyer.

Last year, Reddit said it would charge companies for access to its application programming interface (API) — the way it distributes content. The deal with Google is its first with a major artificial intelligence company.

San Francisco-based Reddit, which has been considering a stock offering for more than three years, is preparing to file initial public offering documents this week that will detail its financials for the first time to potential IPO investors.

The filing could come as early as Thursday, two sources said.

The company was valued at about $10 billion (approximately Rs. 82,897 crore) in a 2021 funding round and is currently seeking to sell about 10% of its shares in the offering, Reuters previously reported.

Reddit’s listing would mark the first IPO for a major social media company since Pinterest went public in 2019.

In recent months, makers of artificial intelligence models have been busy striking deals with content owners aimed at diversifying their training data beyond the vast troves of data available on the internet. This practice is fraught with potential copyright issues, as many content creators claim their content is being used without permission.

Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit is known for its diverse niche discussion groups, some of which have tens of millions of members.

At Google I/O 2023, the search giant repeatedly told us it cares about artificial intelligence, launching its first foldable phone and Pixel-branded tablet. This year, the company will use artificial intelligence technology to enhance its apps, services and Android operating system. We discuss this and more on Orbital, the Gadgets 360 podcast.Tracks are available for Spotify, Ghana, Gio Savin, Google Podcasts, Apple Podcasts, Amazon Music And wherever you get your podcasts.