Reddit’s $60 Million Deal: Selling User Content for AI Training

Reddit just struck a big deal with a major AI company, letting them dive into Reddit’s content pool. This deal, worth about $60 million a year, shows Reddit’s getting serious as it gets ready to go public.

Before, AI companies would grab data from the web without asking. But now, things are changing. Reddit’s deal sets a new standard. We don’t know which AI company it is, but it’s a big deal compared to what others are offering.

Earlier, Reddit threatened to block Google and Bing from searching its site if they didn’t make similar deals. It shows Reddit’s not afraid to play tough.

Even though Reddit’s revenue went up by 20% in 2023, it’s still short of its big goal of $1 billion. Now, they’re aiming for a $5 billion valuation when they go public in March. That’s a big drop from what they hoped for in 2021.

This deal shows Reddit’s getting ready for a big change. It’s not just about posting memes anymore. It’s about big money and big moves. Keep an eye out for what’s next.

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