Just a few days ago, we learned that the famous Reddit forum had sold all its content to an AI company, and now we know that the buyer was Google. It is worth noting that the deal, valued at $60 million a year, allows Google to use all of the user-generated content on Reddit to train its own Artificial Intelligence (AI).
In this way, it has been revealed that Reddit has reached an agreement with Google (Alphabet) for the training of the search giant’s artificial intelligence models using its users’ content. This agreement highlights how Reddit, which is preparing for a high-profile initial public offering (IPO), is trying to generate new revenue amid fierce advertising market competition.
This agreement with Google will allow Reddit to achieve a higher stock market value.
Reddit is an American company that has considered going public for over three years. The unveiling of the agreement with Google is no coincidence, as this week they will present their IPO for the first time, detailing financial data for potential investors. It was at this meeting with investors where the deal with Google was revealed, initially leaked without knowledge of who was behind the acquisition of tons of information for training a generative AI.
“The social media platform Reddit has reached an agreement with Google (GOOGL.O) to make its content available for the training of the search giant’s artificial intelligence models,” said three people familiar with the matter, according to Reuters.
Reports suggest that Reddit could be valued at around $10 billion in a 2021 funding round. In its IPO, it aims to sell around 10% of its shares. Reddit’s IPO would be the first major social media company IPO since Pinterest went public in 2019.
AI model developers have been busy making deals with content owners in recent months. The goal of these companies is to diversify their training data beyond scraping the internet. This practice is riddled with potential copyright issues, as many content creators have claimed that their content was used without permission.
Will the same thing happen on any online forum or platform?
Given that legal issues are avoided, and users do not have access to any recourse, it is understandable that agreements like Reddit and Google’s will be repeated in many other areas. However, companies will have to hurry, as it is logical to think that in the near future, such dealings present serious legal problems, especially on platforms where pirated or copyright-infringing content is published. It is expected that Reddit will officially announce the agreement with Google today, as well as reveal all the details surrounding its IPO.
The article “Google has been the buyer of all Reddit content to train its AI” first appeared on El Chapuzas Informático.
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