Reddit signs content licensing deal with AI company ahead of IPO, Bloomberg reports

Reddit logo is seen in this illustration taken November 7, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) – Reddit has signed a contract allowing an Artificial Intelligence (AI) company to train its models on the social media platform’s content, Bloomberg News reported, citing people familiar with the matter.

Reddit, which is eyeing an initial public offering (IPO) launch, has told prospective investors that it signed the deal, worth $60 million on an annualized basis, earlier this year, the report said.

The details of the AI deal could change as talks over the Reddit IPO launch, which could come in March, continue.

The content licensing deal comes at a time when interest in AI is at an all-time high.

Reddit declined to comment.

The agreement, signed with an “unnamed large AI company”, could be a model for future contracts of a similar nature, Bloomberg reported.

Reddit’s IPO, which has been in the works for over three years now, would be the first IPO of a major social media company since Pinterest’s (PINS.N) debut in 2019.

The San Francisco-based company was valued at about $10 billion in a funding round in 2021.

(Reporting by Juveria Tabassum; Editing by Tasim Zahid)