Reddit has recently made a significant agreement with Google, allowing the search engine to utilize its website data for training artificial intelligence models. This deal, valued at approximately $60 million USD annually, has been confirmed by individuals familiar with the negotiations, as reported by Reuters.

The partnership showcases Reddit’s strategic efforts to diversify its revenue streams as it prepares for an upcoming initial public offering. As Reddit gears up for its IPO, it plans to make its filing public soon, providing potential investors with a glimpse into its financial health. With a valuation of around $10 billion in a 2021 funding round, Reddit aims to float approximately 10% of its shares.

This agreement with Google marks Reddit’s first major contract related to its application programming interface (API) since announcing plans last year to monetize access. This shift represents a significant pivot in Reddit’s business strategy, aligning with broader industry trends where AI model developers seek legitimate sources for training data to navigate copyright complexities.

According to reports from Bloomberg and Reuters, it was recently revealed that Reddit had partnered with an unnamed AI company for content access in a licensing deal. Now, Reuters has confirmed that the company is Google. Some subreddits contain very specific work detailed by user communities for free, and Google will be able to leverage this data to train its AI models.

This development underscores Reddit’s forward-thinking approach and readiness to adapt to industry trends. As the company continues on this path of innovation and strategic partnerships, it positions itself as a key player in the evolving landscape of artificial intelligence and data utilization within the telecommunications industry. Stay tuned for more updates on how this collaboration unfolds!