{"id":42258,"date":"2024-02-27T14:35:59","date_gmt":"2024-02-27T19:35:59","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=42258"},"modified":"2024-03-22T08:40:25","modified_gmt":"2024-03-22T12:40:25","slug":"reddit-ai-training-data-and-ipo","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2024\/02\/27\/reddit-ai-training-data-and-ipo\/","title":{"rendered":"Reddit AI Training Data and IPO"},"content":{"rendered":"

Ben Lovejoy<\/a>:<\/p>\n

\n

It’s being reported that a deal has been struck to allow an unnamed large AI company to use Reddit user content for training purposes …<\/p>\n

The deal is said to be worth around $60M per year, and comes at a time when the company is seeking to maximize its value in the run-up to an IPO.<\/p>\n<\/blockquote>\n\n

Emma Roth<\/a>:<\/p>\n

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Google is getting AI training data from Reddit as part of a new partnership<\/a> between the two companies. In an update on Thursday<\/a>, Reddit announced it will start providing Google “more efficient ways to train models.” <\/p>\n

[…]<\/p>\n

The partnership will give Reddit access to Vertex AI as well, Google’s AI-powered service that’s supposed to help companies improve<\/a> their search results. Reddit says the change doesn’t affect the company’s data API terms, which prevent developers or companies from accessing it for commercial purposes without approval.<\/p>\n<\/blockquote>\n\n

Dare Obasanjo<\/a>:<\/p>\n

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Called it. Only question is whether the deal is exclusive or if there’s an option to make it exclusive since $60M is relatively low for exclusivity.<\/p>\n<\/blockquote>\n\n

Jonathan Vanian<\/a>:<\/p>\n

Social media company Reddit filed its IPO prospectus<\/a> with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”<\/p>\n

[…]<\/p>\n

Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing. The social networking company’s core business is reliant on online advertising sales stemming from its website and mobile app.<\/p><\/blockquote>\n\n

Via Dare Obasanjo<\/a>:<\/p>\n

It was valued at $10B in its last funding round and \nSam Altman owns an 8.7% stake.<\/p>

A few surprises in Reddit’s financials are that it’s still unprofitable in its nineteenth year of existence and if it does list at $5B as rumored then it will be a down round relative to its series F funding round.<\/p><\/blockquote>\n\n

Emma Roth<\/a> (via Matthew Cassinelli<\/a>):<\/p>\n

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In an unusual twist, Reddit is also giving an unspecified number of its top users, including moderators and those with high karma scores, the chance to buy shares in its IPO. That’s a privilege usually reserved for professional investors who want to buy stock at a theoretically lower price before everyone else gets to purchase it on the public market.<\/p>\n<\/blockquote>\n\n

Previously:<\/p>\n