Reddit Signs $60 Million Contract with AI Company Ahead of IPO

According to PANews, Reddit Inc. has signed a contract worth approximately $60 million with a large AI company to use its content for training AI models as it approaches its initial public offering (IPO). The move aims to attract investors and boost IPO value by capitalizing on the AI trend. Reddit's revenue exceeded $800 million last year, with a growth of around 20%, and its suggested IPO valuation is at least $5 billion. The IPO could launch as early as next month. Details are still under discussion, and Reddit has declined to comment. Furthermore, AI companies are seeking content licensing agreements to train their programs, including contracts between OpenAI and Axel Springer SE. Reddit's IPO is being handled by 16 banks, including Morgan Stanley and Goldman Sachs Group.