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Reddit says it’s made $203M so far licensing its data

In its IPO prospectus, Reddit revealed that it has contractual agreements to license its data worth a combined $203 million.

Earlier this week, Bloomberg and Reuters reported that a “large unnamed AI company” — possibly Google – had entered into a licensing agreement worth about $60 million on an annualized basis. Content producers, from stock media libraries to news publishers, are increasingly turning to data licensing agreements with AI vendors as chatbots like OpenAI’s ChatGPT threaten to sap traffic. Vendors, in turn, have been spurred to pursue licensing agreements as they face a deluge of lawsuits alleging that they have no legal basis for training their models on data without permission or payment.

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