Google strikes deal with Reddit for AI training data access

Google has struck a deal with Reddit for access to AI training data, reportedly valued at £60 million annually as reported by The Verge. This agreement will enable Google to utilise real-time data from Reddit and employ Google AI for enhancing Reddit's search functionality.

Reddit recently revealed the collaboration, emphasising its dedication to offering Google more effective techniques for training AI models. Through Reddit's data API, Google will gain access to the platform's dynamic content, facilitating streamlined access to Reddit's extensive content repository. This collaboration empowers Google to showcase Reddit content in innovative ways across its products.

CEO Steve Huffman previously mentioned Reddit's API changes as a means to cover costs and explore new revenue streams through data licensing. The partnership also grants Reddit access to Vertex AI, Google's AI-powered service aimed at improving search results.

Despite this agreement, Google and Reddit have had disagreements in the past, with Reddit expressing concerns over potential misuse of its data for AI training. Nevertheless, the recent deal signifies a step forward in their relationship, as both companies navigate the evolving landscape of data usage and monetisation.

Reddit's impending initial public offering (IPO) likely plays a role in its strategic decisions, as the platform aims to enhance its valuation. This collaboration with Google reflects Reddit's efforts to leverage its valuable data assets while maintaining control over its API usage terms.

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