Bloomberg News reported, citing people familiar with the situation, that Reddit has signed a contract allowing an Artificial Intelligence (AI) company to train its models on the material of the social media network.
According to the article, Reddit, which plans to conduct an initial public offering (IPO), informed potential investors that it had inked the agreement earlier this year, which is valued at $60 million on an annually basis.
As discussions around the potential March launch of Reddit’s initial public offering (IPO) continue, the specifics of the AI contract may change. The agreement for content licensing is being made at a moment when interest in AI is greater than ever.
Reddit said it would not comment.
According to Bloomberg, the deal that was signed with a “unnamed large AI company” might serve as a template for other agreements of a similar kind in the future. After Pinterest’s (PINS.N) 2019 debut, Reddit’s (which has been in the works for more than three years) would be the first large social media business to go public.
In a 2021 investment round, the San Francisco-based startup was valued at over $10 billion.
