Reddit disclosed 2023 income progress of 20% and mentioned its core enterprise depends on internet advertising gross sales when it filed to go public on Thursday. But the social media firm can appeal to greater than advertisers.
“This is an AI play,” Herb Greenberg, Editor of “Herb Greenberg | On the Street” on Substack, defined on CNBC’s Last Call Thursday.
“If you go through the prospectus, the first thing you see is the talk that they’re using this to train large language models — and that’s true,” Greenberg mentioned.
Reddit cut a $60 million deal with Google on Thursday for the tech big to coach its AI fashions on the social network’s information.
“They talk about the revenue they’re going to get from that from licensing that data,” Greenberg mentioned. “However, you could argue that most of the good, valuable data has already been given away. And they’re just now starting to license it.”