🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥

Startup Showcase

Premium Content

Try our Valuation Calculator →

News on Medial

Reddit sells training data to unnamed AI company ahead of IPO

Arstechnica

Arstechnica · 1y ago

Reddit sells training data to unnamed AI company ahead of IPO

Reddit has reportedly signed a $60 million per year deal with an undisclosed AI company to train its models using the platform's content. The move is seen as a boost to Reddit's anticipated initial public offering (IPO). While it is unclear if the AI company is OpenAI, the contract could serve as a model for future agreements. Reddit's decision to monetize its user-generated content follows a trend where tech firms enter licensing deals with AI companies for training data. Despite previous controversies, Reddit's revenue exceeded $800 million in 2023.

Related News

Reddit is going public and inviting power users to invest

The Verge

The Verge · 1y ago

Reddit is going public and inviting power users to invest

Reddit has filed its S-1 registration statement with the SEC, revealing its financials ahead of its anticipated IPO on the NYSE. The company reported $804 million in revenue in 2023, mostly from advertising, but also had a net loss of $90.8 million. Reddit plans to offer its top users, including moderators and high karma score holders, the opportunity to buy shares in the IPO. It also unveiled a data licensing and model training monetization strategy and announced an AI training data deal with Google.

Reddit in AI content licensing deal with Google

Economic Times

Economic Times · 1y ago

Reddit in AI content licensing deal with Google

Reddit has reportedly signed a $60 million per year deal with Google to provide its content for training the search engine's AI models. The agreement comes as Reddit prepares for its highly anticipated IPO and aims to generate new revenue streams amid stiff competition from platforms like TikTok and Facebook's Meta. This deal marks Reddit's first reported partnership with a major AI company, reflecting the trend of AI models seeking diverse training data beyond web scraping. Reddit is set to file its IPO documents this week and plans to sell approximately 10% of its shares.

Reddit receives FTC inquiry on AI-related deals ahead of IPO

Economic Times

Economic Times · 1y ago

Reddit receives FTC inquiry on AI-related deals ahead of IPO

The U.S. Federal Trade Commission (FTC) is investigating Reddit's sale, licensing, and sharing of user-generated content with third parties for AI model training, according to Reddit. The company claims it has not engaged in any unfair or deceptive trade practices. In February, Reddit signed a $60 million per year deal with Google to provide content for training its AI models. This move highlights Reddit's efforts to generate additional revenue amidst strong competition from platforms like TikTok and Meta Platform's Facebook. Reddit is currently preparing for its highly anticipated IPO, aiming for a valuation of up to $6.4 billion.

Reddit's planned IPO share price seems high, unless you look at its AI revenue

TechCrunch · 1y ago

Reddit's planned IPO share price seems high, unless you look at its AI revenue

Reddit has revealed its IPO plans with an initial price range of $31 to $34 per share, potentially valuing the company at around $5.4 billion. Despite being an unprofitable social media platform, Reddit's data licensing arrangements with AI companies could be a key factor in its higher valuation. The company sold $203 million worth of contracts to access its data in January 2024, attracting investors interested in Reddit's potential as a valuable source for training large language models. Reddit's active user base and extensive content creation make it an attractive asset in the AI industry.

Reddit aims to ride the AI wave by going public

Business Insider

Business Insider · 1y ago

Reddit aims to ride the AI wave by going public

Reddit is preparing to go public on the New York Stock Exchange with an IPO expected next month. The social media platform's listing is set to be the largest by a social media company since 2019. Unlike its early contemporaries, such as Facebook and Twitter, Reddit has delayed its move to the stock market. In its filing with the Securities and Exchange Commission, Reddit revealed surprises such as OpenAI CEO Sam Altman being its third-largest shareholder. The company's revenue rose 21% in the past year, reaching $804 million, and it listed data licensing and AI training as additional income streams.

X changes its terms to bar training of AI models using its content | TechCrunch

TechCrunch · 1m ago

Social network X has updated its developer agreement to prohibit the use of its content for training AI models. This step ensures that third parties cannot leverage the platform’s data for AI model training without permission. This change follows xAI's acquisition of X, reflecting a strategic move to protect its data assets. Similar measures have been adopted by other tech companies like Reddit and The Browser Company to restrict access for AI crawlers.

Vana plans to let users rent out their Reddit data to train AI

TechCrunch · 1y ago

Vana plans to let users rent out their Reddit data to train AI

Vana, a startup, aims to allow users to earn money by renting out their Reddit data for AI training. The founders, Anna Kazlauskas and Art Abal, developed Vana as a platform that lets users combine their personal information into data sets usable for AI model training. Vana also allows for personalized user experiences by fine-tuning public models on the collected data. Vana ensures user data control and presents a monetization opportunity for individuals who can collectively decide how their data is used through the Reddit Data DAO.

Reddit's US IPO filing reveals $90.8 million losses, 21% revenue growth in 2023

Economic Times

Economic Times · 1y ago

Reddit's US IPO filing reveals $90.8 million losses, 21% revenue growth in 2023

Reddit has revealed that its net loss for 2023 narrowed to $90.8 million, with revenue growth of around 21%. The financial disclosure coincided with the public release of the company's initial public offering (IPO) filing ahead of its planned debut on the US stock market in March. Reddit reported an average of 73.1 million daily active users and 267.5 million weekly active users in the last quarter of 2023, with over 100,000 active communities on its platform. The company has also entered into a deal with Google to make its content available for training the search engine's artificial intelligence models, worth about $60 million per year.

Reddit goes public: the latest updates on its IPO

The Verge

The Verge · 1y ago

Reddit goes public: the latest updates on its IPO

Reddit is planning to go public with a valuation of $6.5 billion, following a year of internal changes and increased control over its data. The company has attracted attention from tech giants like Google, who recently signed a $60 million per year deal for real-time access to Reddit's data, which can be used to train artificial intelligence. Reddit's first attempt at an IPO in 2021 was unsuccessful, but the company is now looking to leverage the excitement around generative AI to make a successful public offering. Additionally, Reddit is allocating shares for its moderators and users as part of its IPO.

OpenAI strikes deal to bring Reddit content to ChatGPT

Economic Times

Economic Times · 1y ago

OpenAI strikes deal to bring Reddit content to ChatGPT

Reddit has teamed up with OpenAI to integrate its content into the popular chatbot ChatGPT. This move is part of Reddit's strategy to expand beyond its advertising business and follows its recent partnership with Alphabet to provide its content for training Google's AI models. OpenAI products, including ChatGPT, will utilize Reddit's application programming interface (API) to access the platform's content. Additionally, OpenAI will become a Reddit advertising partner. This collaboration is seen as a significant revenue opportunity for Reddit, particularly in selling its data for AI model training. Following the news, Reddit's shares rose by 12% in after-hours trading.

Trackers

Active Indian VC’s

OG Capital Email

With a hands-on approach, OG Capital aims to invest in over 20 promising...

Accel Partners Email

Early and growth-stage investments in disruptive technology companies with...

Early-stage venture capital firm investing in technology startups in India. Focus on...

Access All Trackers

Startup Showcase Winners

June 2025

Helping your parents when you are miles away

The Pit Stop Your Cravings Deserve

The next generation E-commerce platform

Enter Ongoing Startup Showcase

Top Users

Trending News on Medial

Railways launches RailOne Super A ...

All In Capital launches The Eleva ...

30 Startups To Watch: Startups Th ...

Download the medial app to read full posts, comements and news.