The contract between Google (owned by Alphabet) and Reddit is worth approximately $60 million per year. This agreement highlights Reddit's efforts to generate new revenue streams amidst fierce competition for advertising revenue from other platforms such as TikTok and Facebook (owned by Meta).
Reddit is known for its diverse and in-depth discussion groups. Photo: Reuters
Previously, Bloomberg reported on a content deal with Reddit without naming the buyer.
Last year, Reddit announced it would charge companies for access to its application programming interface (API) – the means by which it distributes its content. The deal with Google is the first reported agreement with a major AI company.
In recent months, AI model makers have been busy negotiating with content owners to diversify their training data beyond the vast amount of data available on the internet, as many content creators have complained about copyright issues due to their content being used by companies without permission.
The agreement comes as Reddit prepares to file for an initial public offering (IPO) this week, which will for the first time detail its finances to potential IPO investors.
Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit is known for its diverse and in-depth discussion groups, some of which have tens of millions of members.
Ngoc Anh (according to Reuters)
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