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Reddit and Google Forge $60 Million AI Partnership Following Data Access Dispute

Published February 23, 2024 2:52 PM
Samantha Dunn
Published February 23, 2024 2:52 PM
Key Takeaways
  • Reddit’s Google partnership will enable the search engine to use the Reddit Data API.
  • This indexing of Reddit content by Google serves as a significant traffic source for Reddit
  • The partnership holds immense importance for Reddit in the run-up to its IPO.

Reddit has entered into a landmark partnership with Google, valued at $60 million annually.

Central to the partnership is Reddit’s agreement to grant Google access to its data API, enabling real-time content integration into Google’s AI models.

Google to Access Reddit Data API

Google’s latest announcement underscores its commitment to advancing AI technologies across various fronts. From the launch of products like Ultra and Gemini 1.5 Advanced to initiatives in open-source AI development, Google has been aggressively pursuing AI innovation.

The partnership announcement  from Rajan Patel, Vice President, outlined a “deepening” of their existing relationship:

“We’ve had a longstanding relationship with Reddit for many years, and today we’re sharing a number of ways that we’re deepening our partnership across the company. Reddit plays a unique role on the open internet as a large platform with an incredible breadth of authentic, human conversations and experiences, and we’re excited to partner to make it even easier for people to benefit from that useful information.”

In a corresponding post, Reddit  mentioned the partnership would allow Google to train its AI models:

“This enhanced collaboration provides Google with an efficient and structured way to access the vast corpus of existing content on Reddit and enables Google to use the Reddit Data API to improve its products and services – including supporting new ways to display Reddit content and providing more efficient ways to train models.”

Valuable AI Training Data

Google’s new strategy for maintaining AI dominance involves securing sources of training data.

Social media platforms serve as rich data sources for training AI models due to the vast amount of user-generated content they host. These platforms, including Reddit, offer invaluable insights into human behavior, preferences, and interactions, making them prime candidates for AI training data.

The commercial use of user-generated AI training content inevitably raises user concerns. Reddit’s vast trove of content, created by its users for free, is at the center of this debate .

A Rocky Past

Despite past disagreements , the Reddit-Google partnership represents a significant step forward for both companies. For Google, access to Reddit’s data API offers a valuable resource for enhancing its AI capabilities and refining its search algorithms. Meanwhile, Reddit stands to benefit financially from the collaboration.

The timing of the Reddit-Google partnership appears particularly strategic, as Reddit prepares for its initial public offering  (IPO). By entering into deals like this, Reddit aims to enhance its valuation quickly, appealing to potential investors and maximizing its market value before going public.

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