Reddit closes $60 million deal that will allow Google to train AI models for its posts and unveils IPO plans

  • Post by: Admin
  • Feb 23 2024

Reddit has struck a deal with Google

Reddit closes $60 million deal that will allow Google to train AI models for its posts and unveils IPO plans

Reddit has struck a deal with Google

SAN FRANCISCO (AP) — Reddit has struck a deal with Google that will allow the search giant to use posts from the online discussion site to train its artificial intelligence models and improve services like Google Search.

The deal, announced Thursday and valued at about $60 million, will also give Reddit access to Google AI models to improve internal site search and other features. Reddit declined to comment or answer questions beyond its written statement on the deal.

Separately, the San Francisco-based company announced plans for its initial public offering on Wednesday. In documents filed with the Securities and Exchange Commission, Reddit said it had net income of $18.5 million in the October-December quarter - its first profit in two years - on revenue of $249.8 million reported US dollars. The company said it plans to list its shares on the New York Stock Exchange under the ticker symbol RDDT.

The Google deal is a big step for Reddit, which relies on volunteer moderators to lead its extensive offering of free-flowing, topic-based discussions. These moderators have publicly protested previous Reddit decisions and most recently suspended much of the site for days when Reddit announced plans to charge many third-party apps for access to its content.

The agreement with Google does not include any data-driven changes to how Reddit works, according to a person familiar with the matter. This person requested anonymity to speak freely during the SEC-enforced “quiet period” that precedes an IPO. Unlike social media sites like TikTok, Facebook and YouTube, Reddit doesn't use algorithmic techniques that try to guess what users will be most interested in next. Instead, users simply search for the discussion forums that interest them and can then dive into ongoing conversations or start new ones.

The person also noted that the agreement requires Google to follow Reddit's terms of service and privacy policies, which also differ in some respects from those of other social media outlets. For example, when Reddit users delete their posts or other content, the site deletes them everywhere, leaving no ghostly remnants in unexpected places. Reddit partners like Google are committed to doing the same to "respect the choices users make on Reddit," the person said.

The data sharing agreement is also important for Google, as it urgently needs access to human-written material to train its AI models to improve their “understanding” of the world and therefore their ability to provide relevant answers to questions. to improve a conversation format.

Google praised Reddit in a press release, calling it a source of "an incredible range of authentic, human conversations and experiences" and emphasizing that the search giant's primary aim is to "make it even easier for people to consume this useful information."

Google downplayed its interest in using Reddit data to train its AI systems, instead emphasizing how it will make it "even easier" for users to access Reddit information like product recommendations and travel advice by sharing it through Google products forwards.

It described this process as a "more content-focused presentation of Reddit information" designed to both benefit Google's tools and make it easier for people to participate on Reddit.