Reddit has reportedly signed a $60M deal with an AI company that will see user content being used to train the company’s model.
Since the beginning of 2023, AI companies have skyrocketed in popularity, with various chatbots and tools being created.
These tools use existing data online to gather their information via web scraping, causing quite a bit of backlash from various communities.
Reddit has reportedly signed a contract to sell its user-created content to an unnamed AI company in a deal worth $60M.
Reddit to sell user content to AI company
According to Bloomberg’s sources familiar with the matter, Reddit has signed a contract that will allow a company to train its AI models on the social media platform’s content.
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The deal, reportedly worth $60M annually, will give the unknown AI company the license to train its models on both existing and future comments and posts from Reddit’s 800+ Million monthly users.
Bloomberg says that this deal may be a model for future contracts from other companies that may decide to sell their content to help teach AI models.
OpenAI signed a similar deal back in December 2023 with German media company Axel Springer SE and is reportedly in talks with CNN, Fox Corp, and Time to license their work in the future.
We’ll have to wait to see what kind of deals happen in the future as AI continues to evolve. However, users across social media have made it clear that they’re not exactly happy with the idea that their content is being sold.