Reddit Signs AI Content Licensing Deal With Google; Said to Be Worth $60 Million a Year
Reddit is preparing for a high-profile stock market launch.
Social media platform Reddit has struck a deal with Google to make its content available for training the search engine giant's artificial intelligence models, three people familiar with the matter said.
The contract with Alphabet-owned Google is worth about $60 million (roughly Rs. 497 crore) per year, according to one of the sources.
The sources were not authorized to speak to media and declined to be identified.
Reddit and Google declined to comment.
Bloomberg previously reported Reddit's content deal without naming the buyer.
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.
The filing could be available as early as Thursday, two of the sources said.
The company, which was valued at about $10 billion (roughly Rs. 82,897 crore) in a funding round in 2021, is seeking to sell about 10 percent of its shares in the offering, Reuters has previously reported.
Makers of AI models have been busy clinching deals with content owners in recent months, aiming to diversify their training data beyond large scrapes of the internet. That practice is rife with potential copyright issues as many content creators have alleged that their content was used without permission.