Google signs content licensing deal with Reddit to train AI models

Social media platform Reddit has struck a deal with Google to make its content available for training the search engine giant's artificial intelligence models, three people familiar with the matter said. The contract with Alphabet-owned Google is worth about $60 million per year, according to one of the sources.

The deal underscores how Reddit, which is preparing for a high-profile stock market launch, is seeking to generate new revenue amid fierce competition for advertising dollars from the likes of TikTok and Meta Platform's Facebook.The sources were not authorized to speak to media and declined to be identified. Bloomberg previously reported Reddit's content deal without naming the buyer.

Last year, Reddit said it would charge companies for access to its application programming interface (API) - the means by which it distributes its content. The agreement with Google is its first reported deal with a big AI company.

San Francisco-based Reddit, which has been looking at a stock float for more than three years, is preparing to make its initial public offering filing this week, which would detail its financials for the first time to potential IPO investors.
The filing could be available as early as Thursday, two of the sources said.