Reddit has inked a landmark deal with Google, Reuters reports. The agreement, worth approximately $60 million annually, will allow Google to use Reddit's vast content repository for training its AI models, marking a significant partnership between the social media giant and the search engine behemoth.

This collaboration emerges as Reddit is gearing up for its much-anticipated Initial Public Offering (IPO) slated for March 2024. By leveraging Google's AI expertise, Reddit intends to enhance its search capabilities and user experience while exploring new revenue streams.

The deal is notable for its mutual benefits. Google gains access to real-time data from Reddit’s diverse and dynamic content ecosystem, providing a structured pathway to the "vast corpus of existing content on Reddit." This will not only aid in refining Google's AI models but also allow for the innovative presentation of Reddit content across Google's product suite. Meanwhile, Reddit is set to use Google's Vertex AI to boost its search functionalities, a move that aligns with its API changes and the push towards generating additional revenue through data licensing.

The partnership has stirred interest among potential investors and the tech community, serving as a model for similar future contracts that could reshape the way content is leveraged for AI advancements.

However, the deal has raised questions regarding which Reddit posts will be used for AI training, encompassing a range of text and media files. Previously, Reddit announced plans to charge companies for API access, reserving free use for non-commercial researchers and developers creating tools to improve Reddit user experience. This move was partially motivated by the desire to prevent unrestricted AI training on social conversations without proper compensation.