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Social network Reddit has struck a deal with Google to make its content available to train the internet giant’s artificial intelligence models, three sources
KEY FACTS
- The contract with Google is worth 60 million dollars a year.
- The deal underscores how Reddit, which is gearing up for its landmark initial public offering, is looking to generate new revenue amid increased competition for ad budgets from players like TikTok and Facebook.
- Last year, Reddit said it would charge companies for access to its application programming interface (API), the means by which it distributes its content.
- The deal with Google is Reddit’s first announced deal with a major artificial intelligence company.
ACCENT
Reddit, which has been mulling an IPO for more than three years, is preparing to make an initial public offering this week that will detail its financials for the first time to potential investors.
The company, which was valued at about $10 billion in a 2021 funding round, wants to sell about 10 percent of its shares in the initial public offering.
Reddit’s listing would be the first major social network IPO since Pinterest in 2019.
