TLDR:
Reddit has signed a deal with Google to provide content for AI chatbot training, reportedly worth $60 million a year. The deal will see Google pay to access Reddit’s Data API to train and update its AI models. OpenAI’s Sam Altman could benefit from this deal, as entities affiliated with him hold 8.7% of Reddit shares. Reddit is expected to go public next month.
Key Elements:
- Reddit signs deal with Google to provide content for AI chatbot training
- Deal reportedly worth $60 million a year
- Entities affiliated with OpenAI’s Sam Altman hold 8.7% of Reddit shares
- Reddit expected to go public next month
Reddit will provide content posted on its forums to Google for training and updating AI chatbots. Google will pay to access Reddit’s Data API, offering real-time access to posts and comments. This partnership could benefit OpenAI’s Sam Altman, as entities affiliated with him hold a significant portion of Reddit shares. Reddit’s expected IPO could make Altman’s stake more valuable. Reddit reported $804 million in revenue for 2023, with most of it coming from online advertising. The partnership with Google represents a new revenue stream for Reddit.
Reddit and Google’s deal comes at a time when large language model developers are scraping data from various sources for AI training. Google’s partnership with Reddit does not change its use of publicly available data for training its models. Reddit’s Data API will provide Google with fresh information and enhanced signals to train its AI models. The deal is expected to benefit both parties and could have implications for the AI training landscape.