Reddit Signs Deal with Google to Train AI Models [Update]

Reddit has entered into a significant agreement with Google, allowing the search engine to use its website data for training artificial intelligence models.

This deal, said to be valued at roughly $60 million USD annually, was confirmed by three individuals familiar with the negotiations, reports Reuters.

The partnership highlights Reddit’s strategic moves to diversify its revenue streams as it gears up for a much-anticipated initial public offering.

Details of the agreement emerged amidst Reddit’s preparations for an IPO, with plans to make its filing public as soon as Thursday, according to two sources. This move will offer a first glimpse into Reddit’s financial health to potential investors. The company, which was valued at around $10 billion in a 2021 funding round, aims to float approximately 10% of its shares.

The deal with Google is 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.

It was just last week that Bloomberg reported Reddit had partnered with an unnamed AI company to access its content in a licensing deal, and now Reuters says it is Google. Some subreddits are full of very specific work detailed for free by user communities and it seems Google will be able to leverage this data to train its AI models.

Update: Google and Reddit have confirmed the deal is in place and it’s real.

Google says “we’re pleased to announce a new Cloud partnership that enables Reddit to integrate new AI-powered capabilities using Vertex AI. Reddit intends to use Vertex AI to enhance search and other capabilities on the Reddit platform.”

Also, “Google now has access to Reddit’s Data API, which delivers real-time, structured, unique content from their large and dynamic platform. With the Reddit Data API, Google will now have efficient and structured access to fresher information, as well as enhanced signals that will help us better understand Reddit content and display, train on, and otherwise use it in the most accurate and relevant ways.”