Google to use Reddit posts for training AI models

Reddit will get access to Vertex AI as part of the deal as it heads for IPO

Reddit has inked a deal with Google, enabling the search giant to use posts from the popular online discussion platform for training its AI models.

The deal, unveiled Thursday and valued at $60 million per year, not only grants Google access to Reddit's vast repository of user-generated content but also empowers Reddit with access to Google's AI models, enhancing features like site search and other functionalities.

Established in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a hub of diverse discussion forums, boasting millions of engaged users.

While Reddit's volunteer moderators have historically governed Reddit forum, the collaboration with Google signifies a shift towards enhancing content curation and search functionalities through AI technologies.

It also marks Reddit's proactive stance in monetizing its platform, especially as it faces intensifying competition for advertising revenue.

The platform had previously announced plans to monetize its application programming interface (API), signaling a shift towards leveraging its content for financial gains.

As part of the deal, Reddit will get access to Vertex AI, Google's AI-driven search service.

For Google, the partnership represents a strategic move towards using human-generated content to refine its AI algorithms, bolstering its ability to provide relevant responses in conversational formats.

In a blog post, Google described Reddit as a treasure trove of "human conversations and experiences," underscoring its commitment to facilitating easier access to valuable information for users.

"Reddit plays a unique role on the open internet as a large platform with an incredible breadth of authentic, human conversations and experiences, and we're excited to partner to make it even easier for people to benefit from that useful information," the company said.

Reddit says the change does not impact its data API terms, which bar developers or companies from using it for commercial purposes without prior approval.

However the move raises data privacy concerns. Reddit's content is generated by its users, and some of it is quite personal. Reddit is now going to sell that data, which will end up in Google's AI models, with no say from its users.

Reddit files for IPO

Reddit on Thursday also revealed plans for an initial public offering (IPO), filing its prospectus with the US Securities and Exchange Commission (SEC).

According to documents, Reddit intends to list its shares on the New York Stock Exchange under the ticker symbol RDDT.

The decision comes on the heels of Reddit's improved financial performance, highlighted by a net income of $18.5 million in the October to December quarter, marking its first profit in two years.

Revenue for the same period reached $249.8 million, as per SEC filing.

Reddit aims to offer approximately 10% of its shares in the IPO, positioning itself as a prominent player in the social media landscape, according to Reuters.

A noteworthy aspect of Reddit's IPO story is the participation of OpenAI CEO Sam Altman.

As reported by Bloomberg, entities linked to Altman hold 8.7% of Reddit's outstanding shares, demonstrating his close links with the platform.

This article originally appeared on our sister site Computing.