Reddit reportedly signed a multi-million content licensing deal with an AI company

Reddit has signed an AI content licensing deal reportedly worth about $60 million annually with a large unnamed AI company, aiming to use user-generated posts and comments to train AI models. This move follows Reddit’s announcement last year of charging companies for API access, enabling them to train chatbots on a wide range of topics from Reddit’s content. While this deal could pave the way for future contracts and revenue growth, it comes amid challenges, such as protests from communities and stability issues on the platform.

With a potential IPO looming and a $5 billion valuation, Reddit hopes to attract investors by showcasing its ability to generate significant revenue through AI partnerships. Other AI firms, like OpenAI, are also seeking content for training models, with OpenAI already securing agreements with publishers like _Business Insider_ and _Politico_ and in discussions with major outlets like _CNN_ and _Time._ However, challenges related to copyright infringement lawsuits have emerged, with OpenAI facing legal action from _The New York Times_ over the use of copyrighted material in training its AI models, despite claims of ongoing partnership discussions. This underscores the complexities and legal implications involved in leveraging user-generated content for AI training purposes in the tech industry.