Reddit and Google are discussing a brand new partnership that might weave Reddit content material extra immediately into Google’s AI merchandise, Bloomberg reported.
Why we care. If Reddit and Google tighten their AI ties, extra Reddit content material might floor in AI Overviews and different Google merchandise – probably shifting visibility for manufacturers and SEOs. If Google and Reddit strike a brand new deal, user-generated discussions will possible carry much more weight in shaping AI-driven solutions and referral visitors.
What’s occurring. Reddit is exploring dynamic pricing, the place payouts from Google or OpenAI might rise as Reddit’s information turns into extra central to AI solutions.
- The talks would construct on Reddit’s first Google data-sharing deal, value a reported $60 million, and broader January 2024 licensing agreements value $203 million.
- Executives mentioned present agreements undervalue Reddit’s distinctive discussions, which gas every part from ChatGPT to Google’s AI Overviews.
What Reddit needs. Reddit is likely one of the most cited sources throughout AI platforms. Nonetheless, visitors from Google usually doesn’t convert into lively customers. Reddit needs to repair this by working extra intently with Google’s product groups.
Zoom out. Licensing offers between AI firms and content material suppliers are accelerating, however Chegg and Penske Media are suing Google over the destructive impression of AI Overviews.
Backside line. Reddit needs to maneuver from flat charges to being paid like vital provider for so long as its boards stay crucial to AI solutions.
The report. Reddit Seeks to Strike Subsequent AI Content material Pact With Google, OpenAI
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