Reddit is reportedly in advanced talks with Google and OpenAI to strike a new content-sharing deal that could reshape how user-generated content is licensed and used by artificial intelligence systems.
According to reports, Reddit aims to move beyond its earlier fixed-fee licensing deals and push for dynamic pricing agreements that reflect the growing value of its content in powering AI models and search tools.
Background: Reddit’s Existing AI Deals
- In 2023, Reddit signed a $60 million annual licensing deal with Google to allow access to its massive library of discussions and forums.
- It also struck a separate deal with OpenAI, making Reddit data available for training AI models such as ChatGPT.
- These agreements helped Reddit diversify its revenue beyond advertising, which remains its core business.
What’s Different This Time
Reddit wants its next partnership with Google and OpenAI to go further:
- Dynamic Pricing: Instead of a flat yearly fee, Reddit is exploring models where payments scale depending on how much and how often its data is used in AI responses.
- Deeper Integration: Reddit may seek arrangements where its content is surfaced more prominently in AI-powered search results, bringing direct traffic back to Reddit forums.
- Value Recognition: Executives argue that Reddit’s community discussions provide high-quality, authentic human knowledge, which makes its data particularly valuable to AI systems.
Potential Challenges
- Regulatory Scrutiny – Governments worldwide are closely watching how AI firms use copyrighted and user-generated data.
- User Concerns – Some Redditors have already raised concerns about their posts being monetized without consent.
- Negotiation Risks – Striking a fair deal with tech giants like Google and OpenAI could be difficult, especially with pricing models tied to usage.
Why It Matters
- For Reddit: A stronger AI licensing strategy could significantly boost its revenue streams and investor confidence after going public.
- For Google & OpenAI: Access to Reddit’s data means more accurate, real-world answers for users of search and AI chatbots.
- For Users: How Reddit handles transparency and consent will determine whether the community accepts or resists these deals.
What’s Next
- Talks are ongoing, with no official announcement yet.
- Industry watchers expect details by late 2025, possibly coinciding with updates to Google Search AI features and OpenAI’s next model release.
- Regulators in the US and EU may review any new deal to ensure it complies with data and competition laws.
