Wednesday, April 24, 2024
WebStore.pk Banner
HomeSoftwareAIReddit and Google Strike $60 Million AI Content Licensing Deal.

Reddit and Google Strike $60 Million AI Content Licensing Deal.

Sources reveal that Reddit has partnered with Google, granting access to its content for training Google’s AI systems.

One of the reports claims that the annual contract value with Alphabet-owned Google is approximately $60 million.

The agreement demonstrates Reddit’s efforts to create fresh revenue in the face of intense competition from competitors like Facebook and TikTok for advertising dollars as it gets ready to go into the public stock market.

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

Both Google and Reddit declined to comment.

Bloomberg previously disclosed Reddit’s content acquisition, but the buyer was not named.

Previously announcing monetization of its API in 2023, Reddit’s deal with Google marks the platform’s first significant collaboration with an AI company, providing access to its content for training purposes.

Reddit, a San Francisco-based company that has been considering a stock float for more than three years, is getting ready to file for an IPO this week. In this filing, it will provide potential investors with the first glimpse at its financials.

According to two of the individuals, the file might be accessible as early as this Thursday.
In the 2021 funding round, the firm was valued at approximately $10 billion. According to a recent report by Reuters, the company is looking to sell nearly 10% of its shares in the offering.

With Reddit’s IPO, a significant social media firm would have gone public for the first time since Pinterest listed its stock in 2019.

Following accusations of unauthorized use of content in training data, AI companies are turning to direct deals with content owners. However, copyright issues remain a potential hurdle in this approach.

Reddit is well-known for its numerous specialized discussion groups, some of which have tens of millions of users. Steve Huffman, a web developer, and Alexis Ohanian, an entrepreneur, founded it in 2005.

RELATED ARTICLES

Most Popular

Recent Comments