Google has partnered with Reddit in a deal worth $60 million per year, allowing Google to access real-time data from Reddit and use Google AI for Reddit’s search. This collaboration aims to provide more efficient ways for Google to train its AI models and give users access to content from Reddit in new ways across Google’s products.
Reddit announced the partnership in an update, stating that it will provide Google with access to its data API, which delivers real-time content from the platform. This will enable Google to access the vast corpus of existing content on Reddit and display it in innovative ways. The CEO of Reddit, Steve Huffman, previously mentioned that data licensing could be a potential revenue stream for the company, indicating that similar partnerships may be pursued in the future.
In return, Reddit will gain access to Vertex AI, Google’s AI-powered service designed to enhance search results. This collaboration is expected to improve Reddit’s search capabilities and provide users with more accurate and relevant results.
It’s worth noting that this partnership does not alter Reddit’s data API terms, which still require approval for commercial use. This ensures that developers and companies cannot access Reddit’s data for commercial purposes without permission.
The collaboration between Google and Reddit comes after Reddit reportedly struck a $60 million training deal with an unnamed AI company just last week. This indicates that Reddit is actively seeking partnerships to enhance its offerings and potentially generate revenue.
Although this partnership demonstrates a positive relationship between Google and Reddit, it hasn’t always been smooth sailing. In the past, Reddit threatened to block Google from crawling its site due to concerns about companies using its data for free to train AI models. However, it seems that both parties have found common ground and are now working together to leverage each other’s strengths.
Furthermore, this partnership aligns with Reddit’s plans to go public in the coming weeks. By collaborating with Google and expanding its capabilities, Reddit aims to boost its valuation, which was already over $10 billion in 2021.
In conclusion, the partnership between Google and Reddit signifies a significant step forward in leveraging real-time data and AI technology. By combining their expertise, both companies aim to enhance user experiences and provide more efficient ways to access and display content. This collaboration not only benefits Google and Reddit but also opens up new possibilities for future revenue-generating arrangements. As Reddit prepares for its initial public offering, this partnership showcases its commitment to innovation and growth in the digital landscape.