Reddit is allegedly planning a lucrative licensing deal, giving a serious AI firm – whose identity stays under wraps – access to its huge trove of user-generated content.
This deal, valued at roughly $60 million annually as reported by Bloomberg, is an element of a trend for AI corporations to take care of content as an alternative of risking copyright issues.
With the New York Times lawsuit against OpenAI still in progress, the race is now on to seal legitimate deals to data – which is the brand new oil.
Apple can also be reportedly pursuing multi-year agreements with major news outlets, potentially value upwards of $50 million.
The firms involved include Condé Nast, publisher of Vogue and The New Yorker; NBC News; and IAC, which owns People, The Daily Beast, and Better Homes and Gardens.
Reddit’s ambitious plans to go public are the backdrop to this latest development.
Despite a 20% increase in year-over-year revenue by the tip of 2023, Reddit fell wanting its billion-dollar revenue goal by $200 million.
The company is eyeing a $5 billion valuation for its impending IPO in March, a slight step back from the potential $10-$15 billion it could have commanded in 2021.
Reddit’s stance on data usage and its negotiation tactics with AI entities got here to light following reports that the platform threatened to dam Google and Bing from indexing its content unless a satisfactory data usage agreement was reached.
This daring strategy and its resilience within the face of internal challenges – like navigating the biggest protest in its history over API access pricing – shows Reddit’s determination to leverage its unique position and wealth of content.
As Reddit prepares for its IPO, which is ready to be probably the most notable events within the social media sector since Pinterest’s market debut in 2019, the corporate’s appetite for partnerships could redefine its role within the evolving AI ecosystem.
This move to go public while capitalizing on its wealthy data through strategic AI partnerships will redefine Reddit and alter how people interact with it. Will long-term users go elsewhere or stay faithful?
We eagerly await news on who the unnamed AI company is.
This article was originally published at dailyai.com
