Social platform Reddit reportedly licenses data to Google for AI training at $60 million per year

According to Reuters, three sources told Reuters that social media platforms Reddit Already withGooglereached an agreement to make its content available for training Google'sArtificial Intelligence ModelThe contract is worth approximately US$60 million per year (currently approximately RMB 431 million).

Social platform Reddit reportedly licenses data to Google for AI training at $60 million per year

Bloomberg also revealed similar news, but did not disclose the company that reached a deal with Reddit. Reuters today said that the large AI company that reached a deal with Reddit was Google.

Last year, Reddit said it would charge for access to its API, causing a large number of third-party clients to stop developing. The agreement reached by Reddit and Google is its first public transaction with a large AI company.

The social platform Reddit has been planning to go public for more than three years and is preparing to file an IPO (initial public offering) application this week. Reddit will disclose its financial situation to potential IPO investors for the first time. Two sources said,Financial documents could be released as early as Thursday.

Reuters previously reported that social platform Reddit, which was valued at approximately $10 billion in a 2021 funding round, is seeking to sell approximately 10% of its shares in this public offering. Reddit's listing marks the first IPO of a major social platform since Pinterest went public in 2019.

AI model companies have been busy in recent months striking deals with content owners to diversify their training data. Many content creators say their content is being used without permission, a practice that poses potential copyright issues.

At present, the source is not authorized to disclose information to the media and refuses to be identified. Both Reddit and Google declined to comment.

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