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Reddit, a social media platform, is negotiating with Google to secure better terms in AI data transactions. According to Bloomberg, Reddit hopes to gain more funding and support in its collaboration with Google to attract more users. This negotiation highlights the complex relationship between large AI companies and content providers, as both sides must avoid harming the traffic and user engagement that sustain their operations while seeking new revenue sources.
After reaching its first data sharing agreement with Google 18 months ago, which was valued at around $60 million per year, Reddit's executives are once again sitting at the negotiation table. Now, Reddit hopes to play a more significant role in Google's AI ecosystem. Beyond seeking more funding, Reddit aims to attract users who get answers from Google search but do not engage with Reddit forums, thus increasing the creation of content on the platform.
It is reported that Reddit is considering a dynamic pricing model, where future licensing agreements will determine fees based on the usefulness or importance of the content to AI tools' answers. Executives believe that the current agreement terms do not reflect the true value of Reddit's data to AI companies. Compared to other platforms, Reddit has richer data resources, as its content is posted by real users and sorted through a humanized voting system rather than algorithms, making its data highly valuable for training AI models.
Data shows that Reddit is the most cited domain in AI tools such as Perplexity and Google's AI overview. Many people use "reddit" as a search technique in Google to obtain more useful answers. This phenomenon highlights Reddit's critical role in the AI data supply chain. Reddit's efforts to secure better terms are not only for financial interests but also to ensure that content providers can continue to survive and develop in this rapidly changing technological environment.
Key Points:
🌐 Reddit is currently negotiating with Google to secure better data transaction terms.
💰 Reddit hopes to receive compensation that reflects the true value of its data through dynamic pricing.
👥 Reddit plans to attract more users to participate in content creation on the platform with Google's support.