Reddit explores new content-sharing agreement with Google, OpenAI
What's the story
Reddit is in early-stage discussions with tech giants Google and OpenAI to expand its content-sharing agreements, according to Bloomberg. The move comes more than a year after the social media platform's first data-sharing deal with Google for an estimated $60 million. The new partnership model proposed by Reddit aims to encourage user participation in its online forums, leveraging Google traffic for growth and future content generation.
Strategic shift
Shifting away from transactional licensing agreements
The ongoing talks with Google and OpenAI mark a strategic shift for Reddit, which is looking to move away from purely transactional licensing agreements. Traditionally, AI companies pay a fixed fee to use Reddit content in their AI products or train their models. However, Reddit thinks these terms don't fully capture the value of its data for these platforms.
Existing contracts
Existing data agreements with Google and OpenAI
Reddit's first data agreements with Google and OpenAI are still active. In January 2024, the platform signed licensing deals, including these two contracts, worth $203 million in contract value over two to three years. The information was revealed in a document Reddit submitted ahead of its initial public offering (IPO) last year.
Data source
Reddit's role in AI training
Reddit's unique platform, which facilitates detailed user discussions on niche topics and human experiences, makes it a valuable data source for training AI models. The platform is also commonly referenced in AI chatbots' responses to real-time user queries, sometimes even linking to specific Reddit threads. This has led to an increase in licensing agreements as AI companies look for legal ways to train their models.
Legal disputes
Legal battles over data scraping
Reddit has also sued OpenAI rival Anthropic for allegedly scraping its data without permission to train its AI models. The case is separate from one of the largest copyright settlements in US history, where Anthropic agreed to pay at least $1.5 billion to a group of authors. Despite these issues, Reddit remains a highly cited source across AI platforms, according to analytics company Profound AI.
User engagement
Ongoing collaboration with Google
Reddit is currently working with product teams at Google to find ways to convert more of its users into active participants in its community forums. This comes as the platform seeks to provide more high-quality data to its AI partners. Despite some challenges, discussions between Reddit and Google have been fruitful so far.