Ever since the launch of ChatGPT, AI companies have skyrocketed in popularity, with different types of tools being created using AI.
These companies need existing data available online to train their models. This approach faced a lot of backlash from artists, writers, and other communities.
Now the news is that Reddit has reportedly signed a contract worth $60 million to sell its user-created content to an unnamed AI company. It is a licensing deal that is worth $60 million per year. According to a report from Bloomberg, Reddit has signed an AI content licensing deal ahead of IPO.
This deal will give the AI company the license to train its models on both existing and future comments and posts from Reddit’s 800+ million monthly active users.
According to Bloomberg, this deal could be the model for future contracts between companies that want to sell their data to help train AI models.
So far, AI companies like OpenAI have been training their models by scraping data from the web without permission. This approach is being questioned every step of the way, so that is why we are seeing such deals. As Bloomberg rightly pointed out we will see these types of deals happen quite often in the future.
Last December, OpenAI signed a similar deal with German media company Axel Springer SE to license their work in the future. Reportedly, they are also in talks with CNN, Fox Corp, and Time to license their work as well.
We’ll have to wait and see what kind of deals AI companies make as the tech continues to evolve over time. However, the users are not happy with this. They don’t want companies to sell their data.
