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Reddit sells its users to Google in exchange for 60 million dollars

The agreement consists of selling all the content created by Reddit users to train Google's AI.

Reddit sells its users to Google in exchange for 60 million dollars
Chema Carvajal Sarabia

Chema Carvajal Sarabia

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Reddit will allow Google to access its user-generated content platform as part of a new licensing agreement. The agreement is valued at around $60 million annually, Reuters confirmed today.

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Until recently, most AI companies trained their data on the open web without asking for permission. But that has proven to be legally questionable, leading companies to try to obtain data on a more solid basis.

Google beats OpenAI to the punch

Until a few days ago, it was unknown which company could be interested, now we know that it is Google, the giant that has been able to offer 60 million when OpenAI was offering the media only 5 million dollars annually.

In this way, Reddit is going to sell the content of all its users to Google to make around 60 million dollars a year. With everyone’s texts and contributions, Google’s AI will be trained.

According to The New York Times, Apple has also been seeking multi-year deals with major news organizations worth “at least $50 million”.

The news also comes after Reddit threatened in October to cut off Google and Bing search crawlers if it did not reach a data training agreement with AI companies.

Reddit has already shown before that it is willing to play hard. Last year, it managed to come out unscathed from the biggest protest in its history after changes in third-party API access prices forced the developers of the most popular Reddit applications to shut down.

As Bloomberg writes, Reddit’s year-over-year revenue increased by 20% at the end of 2023, but they were still $200 million short of the $1 billion target set two years earlier.

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Apparently, the company was advised to seek a valuation of $5 billion when it goes public, which is expected to happen in March. It is half of the $10-15 billion it could have reached last time it applied to go public in 2021, before a market downturn halted it.

Chema Carvajal Sarabia

Chema Carvajal Sarabia

Journalist specialized in technology, entertainment and video games. Writing about what I'm passionate about (gadgets, games and movies) allows me to stay sane and wake up with a smile on my face when the alarm clock goes off. PS: this is not true 100% of the time.

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