Publicly available data on the internet is the primary source for AI companies in training LLMs and chatbots like ChatGPT and Google Gemini. Once you ask an AI chatbot something, the answers are formed based on data already available on the internet. Just like it is for regular users, this data is also accessible to AI companies. However, it appears that this is no longer the case for Reddit, and the platform is banning AI companies from mining its data for free.
The recent move comes after Reddit announced last year that it would license its data to AI companies. In February, Google was the first tech giant to sign a data licensing deal with Reddit, paying the social media company about $60 million a year.
Reddit announced its new “Public Content Policy” on Thursday as a guide to how the platform shares its users’ data with other companies. Reddit has also launched a subreddit dedicated to researchers working with its data.
$203 million earned so far from data licensing
Most of Reddit’s revenue comes from the sale of advertising and the use of the API by developers. While Reddit is now a publicly traded company, it needs more revenue streams to attract investors. Since the platform serves as a data aggregation center, it can make money by selling this data to customers, especially the companies behind AI chatbots like Google and OpenAI. The report at the time of Reddit’s IPO indicated that the platform has made $203 million from licensing its data so far, and that number will most likely grow.
It’s also important to note that Reddit’s new data usage policy mainly targets companies that use it for commercial purposes, such as training AI chatbots and LLMs. However, the platform is committed to maintaining a space for researchers and non-commercial entities. Reddit data will still be available for free to these users, and the company even started a dedicated subreddit, r/RedditForResearchers, to serve their needs.
Reddit’s new data policy isn’t just about restricting access to its data. It’s also about protecting user privacy. The platform emphasizes that users have the right to opt out of sharing their data with AI companies.
Additionally, Reddit users have been banned for using content to spam, harass, or conduct activities such as “background checks, facial recognition, government surveillance, or to assist law enforcement in doing any of the above up”. This policy is intended to ensure that users’ data is handled responsibly and with respect for their privacy concerns.
Tags: Major blow Google OpenAI Reddit longer data mined training free
