Reddit Monetizes AI Demand With Data Fees, Reports First Profit as Public Company

Benzinga

Reddit has emerged as a key partner for AI companies, leveraging its extensive data trove to fuel growth and innovation. After instituting a data-access fee in mid-2023, Reddit's data-licensing revenue soared to more than $80 million in the first nine months of 2024, up from nearly $12 million a year prior. Licensing deals with OpenAI and Google contributed to Reddit's first quarterly profit as a public company, and its stock has doubled over three months. Reddit's valuable AI training data stems from its unique features and licensing focus, though the financial durability of its data deals remains uncertain due to undisclosed terms.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Reddit has emerged as a key partner for AI companies, leveraging its extensive data

00:06trove to fuel growth and innovation. After instituting a data access fee in mid-2023,

00:12Reddit's data licensing revenue soared to more than $80 million in the first 9 months of 2024,

00:17up from nearly $12 million a year prior. Licensing deals with OpenAI and Google

00:22contributed to Reddit's first quarterly profit as a public company,

00:26and its stock has doubled over 3 months. Reddit's valuable AI training data stems

00:30from its unique features and licensing focus, though the financial durability of its data

00:35deals remains uncertain due to undisclosed terms. For all things money, visit Benzinga.com.

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