Reddit agrees to sell its users’ content to train AI

Reddit has signed an agreement with an unnamed company that allows the use of user content on the platform to train an artificial intelligence model, writes Bloomberg.

The company told potential investors that the deal, which was signed earlier this year, is worth $60 million per year. This is yet another attempt by the company to raise its value in anticipation of its IPO.

The company was in talks with investors at the end of last year, and a new deal to sell content to train the AI model could help raise value. The company is currently trying hard to raise its profits, which were estimated at $800 million in 2023.

A person familiar with the deal also said that this may not be the last such case, but may serve as an example for other companies. In the future, Reddit may participate in more similar deals.