Reddit Sells Data to Google and OpenAI
In brief
- Reddit signed a content licensing deal with Google worth around $60 million per year.
- This deal allows training on Reddit content.
- An OpenAI partnership followed in 2024.
- Reddit's revenue mix has three parts: ads, Premium subscriptions, and data licensing.
- Data licensing is a big part of Reddit's revenue now.
- It carries high margins because the content already exists.
- Data licensing revenue will keep growing for Reddit.
Terms in this brief
- Licensing deal
- An agreement where Reddit allows companies like Google and OpenAI to use its content for training their AI models in exchange for money. This helps Reddit earn revenue without creating new content themselves.
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