Reddit Urges Google for Enhanced Deliveries in AI Agreement
In a bid to ensure its survival and maintain the quality of data available on its platform, Reddit is engaging in negotiations with several AI companies. The discussions revolve around the value that AI tools bring to Reddit, as well as the potential threats they pose due to reduced traffic and decreased conversations.
Reddit's unique selling point lies in the valuable conversations that take place on its platform, which are invaluable for training AI models. The site's posts, grouped by topic and ranked by human votes, often provide more useful answers than the top links on Google. In fact, Reddit is the most-cited domain in tools like Perplexity and Google's AI Overviews, surfacing answers to millions of people.
However, the problem arises when these AI tools grab information from Reddit and leave the site without interacting further. This lack of engagement can lead to a decrease in traffic and active conversations, which in turn could affect the quality of data available on Reddit.
To address this issue, Reddit is proposing a new model for data pricing. Known as dynamic pricing, this model would see AI companies paying more for heavily relied-upon posts or communities. This approach is aimed at keeping the Reddit site active and generating content that Google's models depend on.
Reddit's executives are also seeking Google's support to send users back to the site, encouraging them to post, upvote, and generate content. This would not only help maintain the quality of data but also increase engagement on the platform.
In a related development, PayPal is aiming to improve its role within the Google-AI universe and expects stronger support from Google for redirecting users to their internet platform through a multiyear strategic partnership focused on AI-powered commerce and integration with Google platforms.
Interestingly, Reddit signed a licensing deal with Google about a year and a half ago, reportedly worth around $60 million a year. Despite this, the platform continues to seek a bigger role in Google's AI universe, reflecting its commitment to providing high-quality data for AI models.
In conclusion, Reddit's negotiations with AI companies and its proposed dynamic pricing model aim to ensure the platform's survival while maintaining the quality of data available for AI models. The objective is to keep the Reddit site active and generating content that Google's models depend on, making it an essential part of the AI ecosystem.
