Have you ever posted or left a comment on Reddit? Your words will soon be used to train artificial intelligence company models, according to Bloomberg. The website signed a deal “worth approximately $60 million on an annualized basis” earlier this year, it reportedly told potential investors ahead of its planned initial public offering (IPO). Bloomberg didn't name the “big AI company” that pays Reddit millions for access to its content, but their deal could apparently serve as a template for future contracts, which could mean more multi-million contracts for the 'business.
Reddit announced for the first time that it was going to start charging companies for access to APIs in April last year. He said at the time that prices would be divided into tiers so that even a smaller customer base could afford to pay. Companies need this API access so they can train their chatbots on posts and comments – many of which were made by real people over the last 18 years – from subreddits on a wide variety of topics. However, this API is also used by other developers, including those who provide users with third-party clients that are arguably better than the official Reddit app. Thousands of communities closed their doors last year in protest and even caused stability issues this affected the entire website.
Reddit could go public as early as next month with a valuation of $5 billion. As Bloomberg Note, the website could convince still hesitant investors to take the plunge by showing them that it can make big money and increase revenue through deals with AI companies. After all, the companies behind generative AI technologies are working to update their large language models or LLMs through various partnerships. OpenAI, for example, already signed an agreement this would give him the right to use Business Insider And Policy articles to train its AI models. He is also in talks with several publishers, including CNN, Fox Corp. And Time, Bloomberg said.
OpenAI faces several lawsuits that accuse it of using content without express permission from copyright holdershowever, one of which Dropping by The New York Times in December. The AI company previously told Engadget that the lawsuit was unexpected because it had “productive conversations” underway with the publication for a “high-value partnership.”