Reddit is reportedly in early discussions with Google to negotiate a new content-sharing agreement, aiming for deeper integration of Reddit's content into Google's AI products. Reddit also intends to discuss future deal structures with Google and OpenAI that could allow for dynamic pricing, where the social platform can be paid more as it becomes more vital to AI answers. Reddit seeks to move beyond traditional licensing models to pricing that reflects the true value of its content for AI development.
These discussions follow a previous data-sharing agreement between Reddit and Google, valued at approximately $60 million. Reddit's AI licensing deals with Google and OpenAI account for about 10% of its revenue, approximately $130 million, with OpenAI paying around $70 million. The new partnership would encourage users to become active contributors to Reddit's online forums, so Google traffic could help the company grow and generate content for future training.
Reddit believes current terms don't adequately reflect the value of their data to AI platforms. Google's algorithm changes have impacted Reddit's user growth.
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