Reddit signs AI content licensing agreement

Social media giant Reddit has finalized a contract granting an Artificial Intelligence (AI) company access to train its models using the platform’s vast content, according to Bloomberg News.

Reddit, which is currently preparing for an anticipated initial public offering (IPO), disclosed to potential investors its agreement with the AI firm.

Valued at $60 million annually, the deal was reportedly inked earlier this year, although specific terms may undergo revisions as discussions surrounding the IPO, potentially slated for March, progress.

The significance of this content licensing agreement is underscored by the heightened interest in AI technologies. Despite the lack of comment from Reddit regarding the contract, Bloomberg’s report indicates that the company has engaged with a prominent but ‘unnamed AI entity’.

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This collaboration may serve as a precedent for similar partnerships, signalling a potential shift in how social media platforms leverage AI capabilities for content management and user engagement.

Reddit’s IPO, a long-anticipated move in the tech industry for over three years, holds considerable significance. If realized, it would mark the first IPO of a major social media platform since Pinterest’s debut in 2019, potentially reshaping the landscape of digital investment.