Reddit has $60M Google AI deal, IPO plans

SAN FRANCISCO — Reddit has struck a deal with Google that allows the search giant to use posts from the online discussion site for training its artificial intelligence models and to improve services such as Google Search.

The arrangement, announced Thursday and valued at roughly $60 million, will also give Reddit access to Google AI models for improving its internal site search and other features.

Separately, San Francisco-based Reddit announced plans for its initial public offering in March. In documents filed with the Securities and Exchange Commission, Reddit said it reported net income of $18.5 million — its first profit in two years — in the October-December quarter on revenue of $249.8 million. The company said it aims to list its shares on the New York Stock Exchange under the ticker symbol RDDT.

The Google deal is a big step for Reddit, which relies on volunteer moderators to run its sprawling array of freewheeling topic-based discussions. Those moderators have publicly protested previous Reddit decisions, most recently blacking out much of the site for days when Reddit announced plans to start charging many third-party apps for access to its content.

The arrangement with Google doesn’t presage any sort of data-driven changes to how Reddit functions, according to an individual familiar with the matter. Unlike social media sites such as TikTok, Facebook and YouTube, Reddit does not use algorithmic processes that try to guess what users will be most interested in seeing next. Instead, users simply search for the discussion forums they’re interested in and can then dive into ongoing conversations or start new ones.

The individual also noted that the agreement requires Google to comply with Reddit’s user terms and privacy policy, which also differ in some ways from other social media. For instance, when Reddit users delete their posts or other content, the site deletes it everywhere, with no ghostly remnants lingering in unexpected locations.