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Reddit, the American version of Tieba, announced its initial public offering plan on Wednesday, with the goal of listing on the New York Stock Exchange.
In its IPO filing with the US Securities and Exchange Commission, Reddit stated that in the fourth quarter of last year, it had a net profit of $18.5 million, marking the company's first profit in two years.
On Thursday, the company announced another positive news, stating that it has reached an agreement with Google worth approximately $60 million. Reddit will allow the latter to use posts published on Reddit to train artificial intelligence models and improve services such as Google Search.
At the same time, Reddit can also access Google's artificial intelligence model to improve its internal website search and other features. This is undoubtedly a great progress for Reddit, as its core business has always relied on volunteer moderators to manage and operate various topic discussions on the platform. After joining Google, it clearly makes its profit model look more promising.
Win Win
Although Reddit is also a social platform, unlike mainstream products such as TikTok, Facebook, and YouTube, it does not use big data to create user profiles and push content of interest. Instead, it allows users to create and participate in discussions by searching for their target topics.
According to sources, the collaboration with Google will not break Reddit's existing operating model, nor will it introduce algorithms into customer interest targeting. In addition, Google also needs to comply with Reddit's user agreement, which states that when a poster chooses to delete a post or perform other actions, Reddit and Google are not allowed to retain relevant content.
Reddit is said to also be able to access Google's Vertex artificial intelligence service through this. Previously, Reddit stated that it would reform the company's application programming interface program and set it to a paid model, which has sparked strong protests among its users.
This collaboration with Google is also like Reddit exploring the possibility of data licensing fees, but in the short term, it is clear that it can help Reddit achieve better valuations in its IPO.
For Google, the colorful user discussions on Reddit are the best up-to-date teaching material, which can greatly improve the understanding of AI models in the human world.
Google also stated in a statement that the Reddit forum provides incredible, extensive, and authentic human dialogue materials, and Google's goal is to enable people to profit from this useful information.
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