Reddit Reaches AI Content Licensing Deal With Google

The deal between Google (owned by Alphabet) and Reddit is worth about $60 million a year. The deal underscores Reddit’s quest to generate new revenue amid fierce competition for advertising dollars from other platforms like TikTok and Facebook (owned by Meta).

Bloomberg previously reported on a Reddit content deal without naming the buyer.

Last year, Reddit said 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 deal with a major AI company.

In recent months, AI model makers have been busy striking deals with content owners to diversify their training data beyond the vast amounts of data on the internet, as many content creators have alleged copyright issues due to their content being used by companies without permission.

The deal comes as Reddit prepares to file for an initial public offering this week, in which it will detail its finances for the first time to potential IPO investors.

Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit is known for its diverse, in-depth discussion groups, some with tens of millions of members.

Ngoc Anh (according to Reuters)