203m

In its IPO prospectus filed today with the U.S. Securities and Exchange Commission, Reddit repeatedly emphasized how much it thinks it stands to gain — and has gained — from data licensing agreements with the companies training AI models on its over one billion posts and over 16 billion comments. “In January 2024, we entered into certain data licensing arrangements with an aggregate contract value of $203.0 million and terms ranging from two to three years,” the prospectus reads. “We expect a minimum of $66.4 million of revenue to be recognized during the year ending December 31, 2024 and the remaining thereafter.”Now, it’s a mystery as to which AI vendors are licensing data from Reddit so far. Why’s Reddit data valuable? Reddit previously didn’t gate access to its data for AI training purposes.