Reddit Signs AI Content Licensing Deal Ahead of IPO
- Social media firm agrees $60 million deal with AI company
- Reddit advised to seek at least $5 billion IPO valuation
Reddit Inc. has signed a contract allowing a company to train its artificial intelligence models on the social media platform’s content, according to people familiar with the matter, as it nears the potential launch of its long-awaited initial public offering.
The San Francisco-based firm told prospective investors in its IPO that it had signed the deal, worth about $60 million on an annualized basis, earlier this year, the people said. Reddit’s agreement with an unnamed large AI company could be a model for future contracts of a similar nature, one of the people said.