Reddit And Google Boost Agreements For Artificial Intelligence Model Training

JAKARTA - Social media platform Reddit has signed a deal with Google that makes its content available to train the search engine giant's artificial intelligence model. The contract with Alphabet's Google is worth about 60 million US dollars (IDR 938730000.00) per year, according to a source.

The deal shows how Reddit, which is preparing to launch in the stock market, is looking for ways to generate new revenue amid fierce competition for advertising revenue from platforms like Meta's TikTok and Facebook.

Reddit and Google declined to comment on the report. However, Bloomberg had previously reported on a Reddit content deal without naming a buyer.

Last year, Reddit said it would charge companies access to their app programming interfaces (API) the way they distribute their content. The deal with Google was their first deal to be reported with a large AI company.

San Francisco-based Reddit is preparing to make its first stock offering filing this week, which will detail their finances for the first time to potential IPO investors.

The company, which has a valuation of around $10 billion in funding round by 2021, plans to sell about 10% of its shares in the offering, Reuters reported.

Reddit's stock market launch will mark the first IPO of a large social media company since Pinterest listed its shares in 2019. Model maker AI has been busy closing deals with content owners in recent months, aiming to diversify their coach data beyond the wide internet scope. The practice is full of potential copyright issues as many content creators have claimed that the content was used without permission.

Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit is known for its diverse niche discussion groups, some of whom have tens of millions of members.