Reddit Announces IPO Plans, Enters Data Deal with Google

Reddit, the go-to place for communities and endless chatter, is about to hit the stock market big time.

by Faruk Imamovic
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Reddit Announces IPO Plans, Enters Data Deal with Google
© Getty Images/Mario Tama

Reddit, the go-to place for communities and endless chatter, is about to hit the stock market big time. This is huge because Reddit's been around for nearly 20 years, and its decision to go public is a pretty big deal. It's not just about Reddit making some serious cash; it's also sparking a lot of talks about how social media and artificial intelligence (AI) play together.

A Big Step Forward with Some Watchful Eyes

So, Reddit's gearing up for this massive step, but guess what? The Federal Trade Commission (FTC) is getting all curious about Reddit's plans to let AI companies use its content.

Reddit's been pretty open about it, saying they've got nothing to hide and believe they're on the right side of the law. They've even struck a deal with Google to help train AI, worth a cool $60 million every year. This move is kind of a big shift for Reddit, showing they're looking to dive into the AI world head-on.

Facing the Music and Chasing Dreams

Getting to this IPO wasn't a walk in the park. Reddit's admitting they've never really made profits, which might make some people nervous about investing. They're also letting their loyal users buy shares, which is nice for the fans but could make things a bit shaky price-wise.

The whole IPO scene hasn't been too hot lately, with lots of companies hitting pause because of money worries and world drama. But Reddit's stepping up could shake things up, especially with all the buzz around changes in social media rules that might affect other big names like TikTok.

Reddit's not just stopping at the IPO; they're looking at making more money and reaching out to more people around the globe. They've got their eyes on places where lots of people speak English, like India, as a big opportunity.

And they're really pushing into AI, betting that their endless stream of user chats and stories can help make AI smarter. But not everyone's thrilled about their data being used for AI, and the FTC's poking around for more info.

It's a bit of a tightrope walk for Reddit, trying to innovate without ticking off their users or stepping over any legal lines.

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