Reddit Strikes Deal with Google to Enhance AI Models and Services
Reddit, the popular online discussion platform, has announced a groundbreaking deal with Google that will allow the search giant to use posts from Reddit to train its artificial intelligence (AI) models and improve services like Google Search. Valued at approximately $60 million, the agreement will also grant Reddit access to Google’s AI models to enhance its internal site search and other features.
The partnership comes as Reddit prepares for its initial public offering, with plans to list its shares on the New York Stock Exchange under the symbol RDDT. In its Securities and Exchange Commission filing, the San Francisco-based company reported a net income of $18.5 million in the fourth quarter of 2020, marking its first profit in two years, with revenue amounting to $249.8 million.
This collaboration with Google represents a significant move for Reddit, which relies heavily on volunteer moderators to oversee its wide range of topic-based discussions. In the past, these moderators have publicly protested against certain Reddit decisions, including a recent blackout to protest the platform’s plan to charge fees to third-party apps for content access.
According to an anonymous source familiar with the matter, the deal with Google does not indicate any imminent changes to Reddit’s functioning. Unlike other social media sites that employ algorithmic processes, Reddit allows users to simply search for the discussion forums they’re interested in and engage in ongoing conversations or initiate new ones.
The agreement also ensures that Google complies with Reddit’s user terms and privacy policy, which differ from those of other social media platforms. For instance, when Reddit users delete their posts or content, the site ensures its complete erasure with no remnants left behind. Google, as a partner, is obligated to adhere to the same policy to respect user choices made on Reddit.
The data-sharing aspect of the deal is particularly significant for Google, which seeks access to human-written material to enhance its AI models’ understanding of the world and improve their ability to provide relevant and conversational responses to user queries.
In a news release, Google praised Reddit as a treasure trove of “authentic, human conversations and experiences,” expressing its goal to make it even more convenient for users to benefit from the platform’s valuable information. While Google downplayed its interest in using Reddit data for training its AI systems, it highlighted its intention to create “content-forward displays” of Reddit information to benefit both Google’s tools and facilitate user engagement on Reddit.
With this partnership, Reddit and Google are poised to push the boundaries of AI technology while empowering users on both platforms to access information seamlessly.
Analyst comment
Positive news: Reddit strikes a deal with Google to enhance AI models and services. Analyst prediction: The market is likely to respond positively to this news, as the partnership has the potential to improve Google’s AI capabilities and enhance user experience on both platforms. This collaboration may also have a positive impact on Reddit’s upcoming IPO.
