AI News

Reddit Seeking A ‘Better’ Deal with Google for its Content

Reddit wants a better AI deal with Google users in exchange for content

Key Highlights –

  • Reddit is in talks to strike a new, expanded AI content deal with Google, which would reportedly move beyond a fixed-fee model.
  • The new partnership aims to more deeply integrate Reddit’s discussions into Google’s AI products, potentially leading to a usage-based payment system.
  • The move signals Reddit’s strategy to monetize its vast trove of user-generated data, a valuable resource for training large language models.

Reddit is in early talks with Google and OpenAI to strike a new kind of content deal based on the theme of how user-generated data is valued and licensed for artificial intelligence. The talks come more than a year after Reddit’s first landmark data-sharing deal with Google, a partnership valued at about $60 million annually.

According to Bloomberg, the new agreement would deepen the integration of Reddit’s unique, conversational content into Google’s AI products, including AI Overviews and the Gemini assistant. This would not only provide Google with high-quality training data but also drive traffic back to Reddit, a key goal for the social media platform.

Reddit’s New Proposal for AI Content

Reddit’s executives believe that its previous agreements undervalued the platform’s content, which has become a vital resource for training large language models. Unlike a flat fee, the new proposed model would tie payouts to how frequently and effectively Reddit’s data is used to fuel AI-driven answers and search results. This shift is a key part of Reddit’s strategy to generate new revenue streams and fully capitalize on its data assets.

Reddit’s user-driven forums are considered a goldmine for AI companies. The detailed discussions on niche topics and authentic human experiences provide a rich, unfiltered dataset that is highly sought after for improving AI chatbots’ ability to respond to complex, real-world queries. The discussions on Reddit are also sorted and organized by a voting system, which helps AI developers train their models on high-quality content.

The Concept of Monetizing Content

Reddit is not alone in its efforts to monetize its content in the AI era. As large language models scrape the public web for data, many publishers and platforms are now seeking compensation. However, Reddit’s approach of striking licensing deals with the very companies that used to scrape its content for free is a strategic pivot. The company has already signed a series of contracts with major AI firms, which it revealed were worth a total of $203 million in a document filed ahead of its initial public offering last year.

The discussions with OpenAI and Google are a significant step in Reddit’s plan to position itself as a “must-have” supplier for AI training data. While the talks are still in their early stages, if successful, the new model could set a precedent for how other platforms with rich user-generated content, from social media sites to online forums, engage with the AI industry. It represents a shift from a transactional relationship to a more integrated, symbiotic partnership where content providers and AI companies mutually benefit.

Abhijay Singh Rawat
Abhijay is the News Editor at TimesofAI, who loves to follow up on the latest tech and AI trends. After office hours, you would find him either grinding competitive ranked games, or trek up his way in the hills of Uttarakhand.
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