Reddit signs $60 million content licensing deal with AI company ahead of IPO

As Reddit approaches its initial public offering (IPO), it has signed a contract worth about $60 million to allow a major AI company to use its content to train AI models, people familiar with the matter said. The move aims to capitalize on the AI ​​craze and attract investors to boost the value of its IPO. Reddit's revenue exceeded $800 million last year, an increase of about 20%. Some people have suggested that Reddit's IPO could be valued at at least $5 billion, and the IPO could launch as early as next month. Sixteen banks, including Morgan Stanley and Goldman Sachs Group Inc., are involved in preparing for the Reddit IPO. Details are still being discussed and Reddit declined to comment. Additionally, several AI companies are seeking content licensing deals to train programs, with OpenAI inking an AI training contract worth tens of millions of dollars with Axel Springer SE. (Bloomberg)