Reddit Inks $60 Million AI Content Licensing Deal Pre-IPO

NNicholas February 17, 2024 7:01 AM

Ahead of its highly anticipated initial public offering (IPO), Reddit has reportedly signed a $60 million content licensing agreement with an AI company. This deal will allow the AI firm to train its models using Reddit's vast array of user content.

Reddit's deal with AI company

Reddit, the widely-used social media platform, has inked a deal permitting an AI company to utilize its content for AI model training. While the exact details of the AI company have not been disclosed, this marks a significant move in the integration of AI with social media content.

The contract between Reddit and the AI company carries a hefty price tag of $60 million, calculated on an annual basis. The agreement was reportedly signed earlier this year, indicating Reddit's firm commitment to investing in AI technology.

Potential changes to the AI deal

As discussions regarding Reddit's forthcoming IPO continue, the specifics of the AI deal may be subject to changes. The IPO, predicted to be launched as early as March, may influence the final terms of the AI content licensing agreement.

The deal, although signed with an undisclosed AI company, holds the potential to set a precedent for future contracts of similar nature. The agreement underscores the increasing demand for AI-enhanced content in the digital world.

Reddit's long-planned IPO

Reddit's impending IPO has been in the pipeline for more than three years. The upcoming launch, which would be the first IPO from a major social media company since Pinterest in 2019, is being closely watched by investors and industry analysts alike.

More articles

Also read

Here are some interesting articles on other sites from our network.