Reddit Signs AI Content Licensing Deal Ahead of IPO

Reddit has signed a contract allowing an unnamed company to train its AI models on Reddit’s content.
The deal is worth about $60 million annually and was disclosed to prospective investors in Reddit’s upcoming IPO.
Reddit’s revenue last year was more than $800 million, a 20% increase over its 2022 figure.
The AI deal could boost Reddit’s IPO, which could launch as soon as next month with a suggested valuation of at least $5 billion.
AI companies are increasingly striking data licensing deals with content providers for training data.
OpenAI signed a similar contract with German media giant Axel Springer SE in December.