Reddit will allow “a large unnamed artificial intelligence company” access to its user-generated content platform in a new licensing agreement. ai-content-licensing-deal-ahead-of-ipo”>according Bloomberg yesterday. The deal, “worth around $60 million annualized,” the outlet writes, could still change as the company's plans to go public are still in the works.
Whether it's true or not (after all, one of the best ways to avoid SEO spam in search results is to add the word “Reddit” to your search query), Reddit has shown that it's willing to play hardball before. Last year, it managed to emerge from the largest outcry in its history after changes to the price of access to third-party APIs led to developers of the most popular Reddit apps being shut down.
As Bloomberg writes, Reddit's year-over-year revenue was up 20 percent at the end of 2023, but was still $200 million short of the $1 billion target it had set two years earlier. The company was reportedly recommended to seek a valuation of $5 billion when it opens to public investment, which is expected to happen in March. That's half of the $10 billion to $15 billion it could have raised when it last filed to go public in 2021, before the market crisis stopped it.
