Reddit inks $60M content licensing deal with AI company: Report
What's the story
Reddit has signed a $60 million yearly content licensing deal with an undisclosed artificial intelligence (AI) company, reported Bloomberg.
This move will grant the firm access to Reddit's content to train its AI models, per the report.
The agreement comes as the social media giant gears up for its initial public offering (IPO) launch and has also shared the news with potential investors.
Scenario
Details of AI deal could change
The specifics of the AI partnership could reportedly shift as talks surrounding Reddit's IPO, which could happen in March, progress.
Reddit's IPO has been in the works for over three years and will be the first major social media company to go public since Pinterest in 2019.
During a funding round in 2021, the San Francisco-based company was valued at around $10 billion.
Information
Interest in AI is at an all-time high
Reddit's content licensing deal comes at a time when interest in AI is at its peak. Bloomberg reported that the agreement with an "unnamed large AI company" could potentially set a precedent for future contracts of a similar nature. Reddit, however, chose not to comment.