“That’s how you create Skynet”: Reddit’s New $60M Business Deal With AI Company Has Enraged Users Crying Foul

The reported deal to share user content with an unnamed AI organization has Reddit users crying foul.

“That’s how you create Skynet”: Reddit’s New $60M Business Deal With AI Company Has Enraged Users Crying Foul

SUMMARY

  • After previously playing hardball following its API changes, Reddit is reportedly heading forward with a $60M deal with an unnamed AI organization.
  • This will involve them sharing user content with the organization so that they can train their AI.
  • Reasonably, fans are less than thrilled about the decision.
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Reddit has had a rocky relationship with its users, especially after the company listed changes to its third-party API access prices last year, which led to users protesting against the decision. And now things have once again taken a turn for the worse following the platform’s new AI training deal with an unnamed organization, causing users to cry foul against this deal.

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With AI already being a major talking point, following its impact on different fields and its misuse in recent times, users are less than thrilled about the company’s reported decision ahead of going public.

Reddit
Reddit

Users Share Their Distaste With Reddit’s Reported Deal with Unnamed AI Organization

Last year, mods proceeded to shut down many of the popular subreddits to protest against the new API changes, leading to the platform going completely dark for a few days. Even though the platform heavily relies on user-generated content, Reddit previously showcased that they were ready to play hardball by not giving in to people’s demands. The reported deal of the platform with an unnamed AI organization, which will involve them sharing user content for an annual summation of about $60 million, has had users crying foul once again.

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This deal could greatly impact its plans of going public, as they were reportedly advised to seek a $5 billion valuation before opening itself for public investment, which is expected to happen in March.

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Reddit Previously Threatened to Cut Search Crawlers if the Deal Didn’t Go Through

The reported $60 million deal with the unnamed AI organization follows an October story from The Washington Post when Reddit threatened to cut down search crawlers from Google and Bing. The outlet claimed if the platform didn’t get training data deal with AI companies, they might proceed to cut search crawlers, with one anonymous source stating “Reddit could survive without the search”.

Reddit CEO Steve Huffman : Credit: Variety
Reddit CEO Steve Huffman : Credit: Variety

Before this deal, most AI companies resorted to training their AI in the open web, which, while legal, was morally questionable, leading to many companies setting a firmer grip on their content. This resulted in many outlets installing a blocker to prevent companies from stealing data to train their AI. Interestingly, the reported $60M deal with the unnamed organization is way bigger than the $5 million Open AI was reportedly offering news publishers.

And considering the platform didn’t bend to the historic protest that resulted in Reddit going dark for days, fans’ outcry might not impact the platform’s decision ahead of going public.

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Written by Santanu Roy

Articles Published: 1369

Santanu Roy is a film enthusiast with a deep love for the medium of animation while also being obsessed with The Everly Brothers, Billy Joel, and The Platters. Having expertise in everything related to Batman, Santanu spends most of his time watching and learning films, with Martin Scorsese and Park Chan-wook being his personal favorites. Apart from pursuing a degree in animation, he also possesses a deep fondness for narrative-driven games and is currently a writer at Fandomwire with over 1000 articles.