Reddit signs multimillion-dollar content licensing deal with artificial intelligence company

Reddit, one of the largest social networks and information sharing platforms, has announced a deal worth about $60 million with a major artificial intelligence company.

The deal will allow the AI company to access Reddit's content to train its algorithms and AI models. Although the name of the AI company was not disclosed, the move indicates the rapid drive by platforms to use their content to develop and improve artificial intelligence.

According to sources, Reddit's revenues exceeded $800 million last year, which is 20% more than in 2022. This decision may help to increase investor interest and boost the company's valuation.

Reddit recommended considering an IPO (initial public offering) valuation of at least $5 billion. Artificial intelligence companies that need data to train their programs enter into licensing agreements with content providers seeking new sources of revenue. In December, OpenAI signed a contract with German media giant Axel Springer SE for AI training worth tens of millions of dollars.

Source: Bloomberg