Reddit reportedly signed a multi-million content licensing deal with an AI company

Have you ever posted or commented on Reddit? Your words will soon be used to train AI companies’ models Bloomberg. The website signed a deal earlier this year “worth approximately $60 million on an annual basis,” it told potential investors ahead of its expected initial public offering (IPO). Bloomberg He did not name the “major AI company” that paid Reddit millions to access its content, but their deal could serve as a model for future deals, which could mean more multimillion-dollar deals for the firm.

Reddit first announced In April last year, it said it would start charging companies for API access. At the time, he said prices would be tiered so that smaller customers could pay as well. Companies need API access to train their chatbots on posts and comments — many of which have been written by real people over the past 18 years — from subreddits on a variety of topics. However, that API is also used by other developers, including those that provide users with third-party clients that are better than Reddit’s official app. Last year thousands of communities were closed in protest and even caused stability problems it affected the entire website.

Reddit could go public next month at a valuation of $5 billion. whom Bloomberg notes that the website could convince investors who are still on the fence to take the leap by showing that it can make big money and increase their revenue through deals with AI companies. The firms behind generative AI technologies are finally working to update their large language models, or LLMs, through various partnerships. OpenAI, for example, already signed a contract will give the right to use Business Insider and Politics Articles for training AI models. He is also in talks with several publishers including CNN, Fox Corp and time, Bloomberg he says.

OpenAI is facing several lawsuits accusing it of using content without its express permission copyright holdersincluding one though given by The New York Times in December. The AI ​​company previously told Engadget that the lawsuit was unexpected because it had ongoing “productive conversations” with the publication for a “high-value partnership.”

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