Reddit Seeks Revised AI Data Deal with Google to Boost Engagement

Reddit is currently in negotiations with Google to revise its existing content-sharing agreement, which was established over a year ago for a reported $60 million annually. The discussions aim to create a new framework for compensating Reddit for its data, which plays a significant role in training artificial intelligence systems.

Key Changes Proposed by Reddit

According to a report by Bloomberg, the proposed changes focus on two primary areas. First, Reddit is suggesting a shift from a fixed payment model to a dynamic pricing structure. This new model would determine Reddit’s compensation based on the frequency with which its content is referenced by AI platforms, including Google’s AI Overviews. Reddit executives argue that the current agreement does not accurately reflect the value their data brings to AI technologies.

In addition to revising the payment structure, Reddit is seeking to foster a partnership that would enhance user engagement. Currently, many users who find answers sourced from Reddit content via Google do not visit the platform itself. This disconnect limits Reddit’s ability to grow its user base and generate new content, which is vital for ongoing AI training. By improving this relationship, Reddit hopes to create a more sustainable flow of high-quality data for AI models.

The Broader Context of Data Compensation

The negotiations between Reddit and Google are part of a wider conversation among content providers regarding fair compensation for their contributions to AI training. Other platforms, including traditional news publishers, are also navigating similar challenges. For instance, The New York Times has initiated legal action against both OpenAI and Google, claiming that its material was used improperly in AI development. Similarly, Reddit has filed a lawsuit against Anthropic, alleging that the startup illegally scraped its data for AI training purposes.

As the discussions between Reddit and Google proceed, they underscore the increasing importance of content platforms in the AI ecosystem. Reddit’s unique format, featuring in-depth, user-driven conversations across a diverse array of topics, makes it one of the most cited sources for AI tools such as Google’s AI Overviews and Perplexity.

The outcome of these negotiations remains uncertain, but they highlight the pressing need for content creators to establish more equitable arrangements in the rapidly evolving landscape of artificial intelligence. As AI continues to shape the way information is consumed and disseminated, Reddit and other platforms are taking steps to ensure their contributions are recognized and adequately compensated.