Reddit—Reddit licensed user-generated content to Google and OpenAI for $203M to train AI models
Reddit entered into data licensing agreements worth $203 million over 2-3 years, including a $60M/year deal with Google and approximately $70M/year deal with OpenAI, granting access to user-generated content for AI model training. The deals were announced around the time of Reddit's IPO filing in February 2024, raising concerns about monetizing user content without explicit user consent or compensation.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Intellectual Property Ethics | -against | secondary | -0.50 |
| User Privacy | -against | primary | -1.00 |
| Overall incident score = | -0.745 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.66)
Evidence (2 signals)
Reddit disclosed $203M in data licensing deals in IPO filing
In its IPO filing in February 2024, Reddit disclosed it had entered into data licensing agreements worth $203 million over 2-3 years, expecting to recognize at least $66.4 million from these agreements in 2024. The deals grant AI companies access to Reddit's user-generated content for model training.
Reddit announced $60M/year Google content licensing deal alongside IPO filing
Reddit announced a content-licensing deal with Google worth approximately $60 million per year, granting Google access to real-time content from Reddit's forums for AI model training. The deal was announced the same day Reddit filed for its IPO. Reddit later struck a similar deal with OpenAI worth approximately $70 million per year.