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

Benzinga 2024-12-11

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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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