It has been reported that an agreement has been reached to permit an undisclosed prominent AI corporation to utilize Reddit user-generated content for training purposes. The purported deal is valued at approximately $60 million annually and is occurring as the company strives to optimize its worth leading up to an IPO.
According to Bloomberg, Reddit has inked a deal granting an AI entity permission to train its algorithms using the platform’s content. This arrangement has been revealed to potential investors as part of the company’s IPO preparations.
Traditionally, AI firms such as OpenAI have trained their expansive language models by extracting data from the internet without explicit consent from websites or users. However, this practice is now under scrutiny, prompting companies to pursue formal agreements with websites, whereby they pay a yearly fee for access to content for training purposes.
In a similar vein, Apple was reportedly in discussions last year to secure rights to train its AI models using news articles from various media organizations.
The utilization of user-generated content for training models raises more ethical concerns. While Reddit’s terms and conditions may permit this practice, it may not necessarily align with users’ expectations.
This development follows Reddit’s controversial decision to limit access to the API supporting popular client apps like Apollo, a move driven by revenue maximization ahead of its planned IPO. This action sparked widespread backlash and protests within the Reddit community.
During the aftermath of these events, Reddit faced significant backlash due to its exorbitant charges for API access, leading to protests from moderators and users. Certain subreddits resorted to labeling themselves as NSFW to prevent Reddit from monetizing them through ads. Subsequently, Reddit staff removed moderators who persisted in their protests.
