Unknown Firm Offers Reddit $60 Million for AI Training Using User Posts

JJohn February 19, 2024 7:01 AM

An unidentified firm is reported to be paying Reddit $60 million annually for access to its enormous user post database. This move highlights the growing demand for user data as a crucial resource for training Artificial Intelligence (AI) models.

Mystery firm's multi-million dollar deal with Reddit

In the fast-paced world of AI, data is the new oil. A mysterious AI company has reportedly struck a whopping $60 million per year deal with Reddit. The goal? To tap into the social media giant's extensive user post database, which is a goldmine for AI training. But the secrecy surrounding the deal raises several questions. Who is this big spender and why are they shelling out such a large amount for user data?

The increasing demand for data in AI training

The thirst for data in the AI sector is insatiable. As AI models like ChatGPT and DALL-E that generate text and imagery need vast amounts of data for training, AI developers are on a mad dash to secure any human-generated content they can get their hands on. This trend has led to an increase in business deals focused on data acquisition. Reddit's deal with the unknown company is a testament to this growing trend.

User data: the new gold in AI

The Reddit deal reaffirms the critical role that user data plays in the AI industry. It's become clear that user data is the key commodity that is fueling the current AI gold rush. Traditional resources are being overshadowed by the growing significance of data, turning AI developers into modern-day prospectors. This evolution is changing the dynamics of the AI landscape.

Not everyone is thrilled about this data deal. Redditors, who voluntarily contribute their words and ideas to the platform, are questioning the fairness of their content being hoovered up for profit, especially without their permission or any form of compensation. The common sentiment? 'Where the heck is my cut?' A statement which reiterates the age-old saying, 'If you're not paying for the product, you are the product.'

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