Will Reddit sign a license agreement to allow use of its own content to train AI models?

Bloomberg reports that the social news site Reddit plans to sign a new license agreement with a ``large anonymous AI company'' that will give it access to user-generated content. According to reports, this contract is worth 60 million dollars (approximately 9 billion yen) per year.

Reddit Is Said to Sign AI Content Licensing Deal Ahead of IPO - Bloomberg
https://www.bloomberg.com/news/articles/2024-02-16/reddit-is-said-to-sign-ai-content-licensing-deal-ahead-of-ipo

Reddit reportedly signed a multi-million content licensing deal with an AI company
https://www.engadget.com/reddit-reportedly-signed-a-multi-million-content-licensing-deal-with-an-ai-company-124516009.html

Reddit has a new AI training deal to sell user content - The Verge
https://www.theverge.com/2024/2/17/24075670/reddit-ai-training-license-deal-user-content

AI companies have been scraping all the data on the internet to train their AI models without getting permission from the platforms, but media companies like the New York Times are changing their terms of service to combat this and It is prohibited to use it for AI training.

The New York Times bans the use of articles for AI learning in principle and considers legal action against OpenAI - GIGAZINE

In response to these changes in the situation, AI development companies are entering into licensing agreements with companies in order to legally obtain data used for training AI models. For example, in the case of OpenAI, it has been revealed that it offers news publishers a license fee of ``1 million to 5 million dollars (approximately 150 million to 750 million yen) per year.''

Will OpenAI pay $1 million to $5 million a year in license fees to media whose content is used for AI training? - GIGAZINE

Additionally, according to a report from the New York Times , Apple is also in talks to sign a 'multi-year contract worth over $50 million (approximately 7.5 billion yen)' with multiple media outlets to train its own AI model. It is clear that there are.

It has been revealed that Apple has discussed multi-year contracts worth more than $50 million with various media outlets to train generated AI on news articles - GIGAZINE

According to Bloomberg, Reddit has signed a licensing agreement with an 'anonymous major AI company' that allows the company to use its content to train AI models. Reddit is planning an IPO in March 2024, but has informed investors that it has signed a licensing agreement ahead of that, Bloomberg reported. Regarding the license agreement concluded by Reddit, foreign media Engadget points out that ``It may become a model case for multiple license agreements that Reddit will conclude in the future.''

In addition, Reddit was reported in October 2023 that ``Reddit is threatening to block search crawlers unless they enter into a license agreement with Google and Bing.''

Reddit's revenue at the end of 2023 was up 20% year over year. However, the goal of ``annual sales of 1 billion dollars (approximately 150 billion yen)'' set in 2022 was not reached by 200 million dollars (approximately 30 billion yen). Reddit is planning an IPO, but showing it can grow revenue through licensing deals could help persuade investors who are wary of an IPO. It has been.