IPOS - Reddit Is Selling You To Artificial Intelligence Firms: Should You Care? | Benzinga
Shares of social media company Reddit Inc (NYSE:RDDT) rocketed higher in their debut Thursday.
As investors and users debate the valuation of the company, one key concern remains: the value of data insights and their impact on those invested in the company’s future.
What Happened: Founded by Alexis Ohanian, Steve Huffman and Aaron Swartz in 2005, Reddit now has over 850 million active users.
The monetization of the company's user base is a key for growth, as Reddit now enters the world of being a public company that must show growth or a value proposition to investors.
One of the ways Reddit plans to generate revenue is by licensing out its data to large language models. The company signed a $60 million annual deal with Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) earlier this year.
The partnership will see Alphabet's Google get access to Reddit's Data API
"Over the years, we've seen that people increasingly use Google to search for helpful content on ...