Home / News / Technology / OpenAI’s Reddit Partnership Follows $60 Million Data Deal with Google – Who’s Next?
Technology
4 min read

OpenAI’s Reddit Partnership Follows $60 Million Data Deal with Google – Who’s Next?

Last Updated May 17, 2024 1:44 PM
James Morales
Last Updated May 17, 2024 1:44 PM

Key Takeaways

  • Reddit has forged an agreement to let OpenAI access its API.
  • An equivalent deal with Google netted Reddit $60 million a year.
  • Could other AI developers follow suit?

In the ongoing debate over how AI platforms collect, access and display information to users, there are those who have fiercely resisted the emerging AI data paradigm. Most notably, publishers and traditional media outlets. 

Reddit, on the other hand, seems to be pursuing an “if you can’t beat them, join them” policy, granting first Google and now OpenAI access to its API.

AI Firms Vye For Reddit API Access

With Reddit’s Data API developers access and modify data on the platform programmatically, letting them build various apps, plugins and bots.

For average users, Reddit charges $0.24 per 1000 API calls, but for commercial applications, firms must negotiate access. And as demonstrated by Google and OpenAI, that access is especially valuable to AI developers.

Google recently agreed to pay $60 million a year for API access in a deal that covers the use of Reddit data to train its AI models and the ability to integrate it into chatbot outputs. 

OpenAI Partnership Brings Reddit Content to ChatGPT

Like Google, OpenAI will use Reddit’s API to bring chatbot users live data from the platform.

“This will enable OpenAI’s AI tools to better understand and showcase Reddit content, especially on recent topics,” the social media firm said in a statement .

 

While neither firm has confirmed whether OpenAI will pay for API access, it will become an advertising partner. And given the value of its partnership with Google, it is safe to assume Reddit will benefit financially from the arrangement. 

But revenue isn’t the only thing Reddit gains from the recent API deals

Access-for-Access

If Reddit data is a valuable resource for Google and OpenAI, the various AI models they develop are also of interest to Reddit.

From Google, the company secured access to Vertex AI, a model library it will use to enhance search and implement more advanced AI capabilities. 

Meanwhile, the partnership with OpenAI “will also enable Reddit to bring new AI-powered features to redditors and mods, the company revealed in a statement, “Reddit will be building on OpenAI’s platform of AI models to bring its powerful vision to life,” it added.

Between the 2 deals, not only has Reddit netted what could amount to over a hundred million dollars a year in additional revenues; it has also gained access to some of the most coveted AI models on the market.

Having forged alliances with the world’s most prominent AI developers, Reddit could still bring in others too.

Could Other AI Developers Follow Suit?

With 267.5 million weekly users contributing to over 100,000 active subreddits, Reddit has certainly earned its title as “the front page of the internet.”

Sure, X may have more users, and when used correctly, is an indispensable index of current affairs. But sifting through the countless bots and advertisements to find useful, original content can be a challenge for anyone.

Meanwhile, Reddit has remained largely free of both. The platform’s community-based model also offers a more structured repository of information for AI developers to work with.

But does that mean Anthropic, Meta, Mitral and the rest will follow Google and OpenAI?

In general, these smaller developers aren’t catering to the same audience. However, users of their respective platforms could also benefit from Reddit integration. 

Among the primary candidates, Meta seems the least likely. While the company would no doubt love to get its hands on a fresh trove of training data, it doesn’t currently provide any chatbot services that would make the investment obviously worthwhile. 

Anthropic’s Claude, on the other hand, has a modest but not insignificant user base that is rare outside of the ChatGPT-Gemini duopoly. The company thus has a strong incentive to remain competitive with OpenAI and Google and would risk falling behind if it missed out on the emerging trend for chatbot Reddit integrations.

Was this Article helpful? Yes No