Reddit seals $60m AI content deal with Google: Reuters
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The news: Social media platform Reddit has struck a deal to make its content available for training Google’s artificial intelligence models, Reuters reported.
The numbers: Reddit’s deal with Alphabet-owned Google is worth about USD60 million ($91.5 million), the report said, citing unnamed sources.
Reddit has been looking to float for more than three years and is preparing to make its initial public offering filing this week. The company was valued at about $10 billion in a funding round in 2021 and is looking to sell around 10% of its shares in the offering.
The IPO filing will detail its financials for the first time to potential investors.
If Reddit floats it would be the first IPO of a major social media company since Pinterest in 2019.
The context: Last year, Reddit said it would charge companies for access to its application programming interface (API) — the means by which it distributes its content. The agreement with Google is its first reported deal with a big AI company.
It is also part of the social media platform’s plans to generate new revenue amid strong competition for advertising dollars from rivals such as TikTok and Meta's platforms.
The source: Reuters
