Reddit has finalized a $60 million agreement permitting Google to utilize its posts for training artificial intelligence models.

Reddit has reached an agreement with Google, allowing the tech giant to utilize content from the online discussion platform for training its artificial intelligence (AI) models and enhancing products like online search. This deal, announced on Thursday and estimated at around $60 million, also grants Reddit access to Google's AI models to improve features such as site search. Simultaneously, Reddit disclosed plans for its initial public offering (IPO) on Wednesday. In documents submitted to the Securities and Exchange Commission, Reddit revealed a net income of $18.5 million in the October-December quarter, marking its first profit in two years, with revenue totaling $249.8 million. The company intends to list its shares on the New York Stock Exchange under the ticker symbol RDDT.

For Reddit, the Google partnership represents a significant milestone. Reddit traditionally relies on volunteer moderators to oversee its diverse range of topic-based discussions. However, this collaboration signifies a departure from this reliance, potentially addressing challenges related to moderation and content management.

Meanwhile, for Google, accessing human-generated content from Reddit is crucial for training its AI models, enhancing their comprehension of the world and improving their ability to provide relevant responses in conversational formats. While Google emphasized its intention to leverage Reddit's vast repository of authentic human conversations and experiences to benefit users, it downplayed its interest in utilizing Reddit data solely for AI training purposes.

Instead, Google highlighted plans to integrate Reddit information into its products, aiming to streamline access to content such as product recommendations and travel advice. This integration is framed as enhancing user experience and facilitating participation on Reddit, while simultaneously benefiting Google's services.

Overall, the collaboration between Reddit and Google reflects a strategic alignment aimed at leveraging each other's strengths to enhance user experiences and advance AI capabilities, marking a significant development for both entities in the realms of content aggregation, AI training, and user engagement