Reddit has entered into an agreement with Google to supply content from its forums for the training and updating of AI chatbots. This deal, valued at $60 million annually, is expected to benefit OpenAI’s CEO, Sam Altman.
Confirmed on Thursday, the Reddit-Google partnership involves Google paying for access to Reddit’s Data API, which provides real-time access to user-generated posts and comments on the platform. Reddit’s decision to monetize access to the API has proven successful, potentially driven by the growing demand for AI training data.
Google’s VP of engineering, Rajan Patel, stated that the collaboration will grant Google structured access to up-to-date information from Reddit, enabling a deeper understanding and utilization of Reddit content for various purposes, including training AI models.
Reddit is recognized as a valuable resource for training AI chatbots due to the conversational nature of its content. The platform offers a plethora of examples where users engage in informal discussions, providing rich data for machine learning algorithms. Similarly, other prominent language model developers like OpenAI have leveraged Reddit for data mining purposes.
Apart from Google, OpenAI has also invested in accessing content from reputable sources like the Associated Press and Axel Springer SE. However, OpenAI is currently facing a legal challenge from the New York Times for allegedly scraping its content without authorization.
Despite the collaboration with Reddit, Google clarified that it will continue to utilize publicly available content for its products without additional charges. This strategic partnership with Reddit opens up a new revenue stream for Google, potentially increasing the value of Altman’s stake in the company.
Furthermore, Reddit recently filed for an initial public offering (IPO), with disclosures revealing that entities associated with Sam Altman hold a significant stake in the company. Reddit’s revenue for 2023 reached $804 million, primarily driven by online advertising, with plans to leverage AI-powered search to further enhance sales.
Founded in 2005, Reddit has grown to become one of the most popular websites globally, boasting 73 million daily active users. As more details emerge, The Register will provide updates on this evolving story.
