Google strikes $60 Million per year deal with Reddit to train its AI Model

The partnership between Google and Reddit happened on Thursday, allowing Google to gain access to Reddit to train its AI functionalities. What does this deal mean for Reddit? Here is the basic summary of everything you need to know about the deal.

The history between Reddit and Google has been shaky, as previously Reddit threatened to block Google over the concerns of companies using the user data for free to train AI models. Even the threatening went so far as cutting out Google and Bing search crawlers from the website. 

But now with the astounding $60 million deal, Reddit will finally allow Google to train its AI model and help Reddit to expand their business. 

What is in the $60 million deal?

Just a week prior to the deal, we saw Google expanding their AI venture by dropping rebranding Bard to Gemini. It looks like Google is showing no sign of stopping any time soon, as the new collaboration between these two massive companies is to help push the Google AI model to a new frontier. 

How will Google do any of that? Here, Google will gain access to Reddit’s data API model. The job of the model is to deliver real time content from the Reddit platform to Google. 

That’s not all of it, the API model will also help google to give easier access to large amounts of existing content available on Reddit. The $60 million deal will allow Reddit to gain access to Vertex AI, which is an AI-powered service created to help companies improve their search results online.

Reddit did go on to say the deal will not affect any API terms. Reddit’s API terms prohibit developers or companies from using the data for commercial purposes without the proper approval.

What does the deal mean for Reddit?

Since Google is getting a lot out of the deal, here’s what Reddit is getting in return. 

Reddit is also getting a handful of perks from the collaboration with Google. Google will now show Reddit content on its range of products. Google has praised Reddit platform for being an authentic genuine voice to human conversation, now it is going to take the content and funnel it through many google products to improve the interactions.

The inclusion of Reddit content in Google products will allow its influence over more people. On the other side, Google AI now has access to a gigantic amount of user generated continent to train its AI without breaking any law.

Last year, speaking to Verge, the CEO of Reddit Steve Huffman mentioned Reddit’s API usage is all about saving cost and data licensing to expand its business front.

The news is not surprising to the people who are following the tech world, as Reddit going public did hint at a lot of signs of the company making a move towards a different market than before. Just last week, the report did come out on Reddit allowing an unnamed large AI company to handle its user generated content.

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