Nuked Hello my fellow tech enthusiasts! Today, I have some interesting news to share with you all. Reddit has recently struck a new deal with a large AI company to license its user-generated content platform. According to Bloomberg, this deal is valued at around $60 million annually, although the specifics may still change as Reddit prepares to go public.
Up until now, many AI companies have been training their data using information from the open web without proper permission. This has raised legal concerns, prompting companies to seek more secure ways of accessing data. While the details of the AI company involved in Reddit’s deal remain undisclosed, it is significantly more lucrative than other reported deals in the industry.
The news of this deal comes after reports last October that Reddit had threatened to block search crawlers from Google and Bing if agreements couldn’t be reached with AI companies for training data. Despite these bold moves, Reddit has proven itself to be a formidable player in the tech world, successfully navigating challenges in the past.
As Reddit gears up for its public investment debut in March, it has set ambitious revenue targets and valuation goals. With a 20 percent increase in revenue year-over-year, Reddit is aiming to achieve a valuation of $5 billion when it goes public. While this falls short of previous estimates due to market conditions, Reddit remains a strong player in the tech industry.
