Posted 2/17/2024, 12:21:59 AM
Reddit Inks $60 Million AI Deal to Boost IPO Value
- Reddit signed a $60 million per year deal to allow an unnamed AI company to train models on Reddit content ahead of its IPO
- Reddit had over $800 million in revenue in 2022, a 20% increase over 2021
- The AI deal could help attract investor enthusiasm and boost Reddit's IPO valuation to at least $5 billion
- Reddit is planning to launch its IPO as soon as next month, advised by 16 banks led by Morgan Stanley and Goldman Sachs
- The deal follows a trend of AI companies licensing data from content providers like Reddit to train their models