Money talks: Reddit wants to get paid for helping teach Big AI Systems

MIKE ISAAC

Reddit has long been a hot spot for conversation on the internet. About 57 million people visit the site every day to chat about topics as varied as makeup, video games and pointers for power washing driveways.

In recent years, Reddit’s array of chats also have been a free teaching aid for companies like Google, OpenAI and Microsoft. Those companies are using Reddit’s conversations in the development of giant artificial intelligence systems that many in Silicon Valley think are on their way to becoming the tech industry’s next big thing.

Now Reddit wants to be paid for it. The company said on Tuesday that it planned to begin charging companies for access to its application programming interface, or A.P.I., the method through which outside entities can download and process the social network’s vast selection of person-to-person conversations.

“The Reddit corpus of data is really valuable,” Steve Huffman, founder and chief executive of Reddit, said in an interview. “But we don’t need to give all of that value to some of the largest companies in the world for free.”

The move is one of the first significant examples of a social network’s charging for access to the conversations it hosts for the purpose of developing A.I. systems like ChatGPT, OpenAI’s popular program. Those new A.I. systems could one day lead to big businesses, but they aren’t likely to help companies like Reddit very much. In fact, they could be used to create competitors — automated duplicates to Reddit’s conversations.

Reddit is also acting as it prepares for a possible initial public offering on Wall Street this year. The company, which was founded in 2005, makes most of its money through advertising and e-commerce transactions on its platform. Reddit said it was still ironing out the details of what it would charge for A.P.I. access and would announce prices in the coming weeks.

Reddit’s conversation forums have become valuable commodities as large language models, or LLMs, have become an essential part of creating new AI technology.

LLMs are essentially sophisticated algorithms developed by companies like Google and OpenAI, which is a close partner of Microsoft. To the algorithms, the Reddit conversations are data, and they are among the vast pool of material being fed into the LLMs to develop them.

The underlying algorithm that helped to build Bard, Google’s conversational A.I. service, is partly trained on Reddit data. OpenAI’s Chat GPT cites Reddit data as one of the sources of information it has been trained on.

Other companies are also beginning to see value in the conversations and images they host. Shutterstock, the image hosting service, also sold image data to OpenAI to help create DALL-E, the AI program that creates vivid graphical imagery with only a text-based prompt required.

Last month, Elon Musk, the owner of Twitter, said he was cracking down on the use of Twitter’s API., which thousands of companies and independent developers use to track the millions of conversations across the network. Though he did not cite LLMs as a reason for the change, the new fees could go well into the tens or even hundreds of thousands of dollars.

To keep improving their models, artificial intelligence makers need two significant things: an enormous amount of computing power and an enormous amount of data. Some of the biggest AI developers have plenty of computing power but still look outside their own networks for the data needed to improve their algorithms. That has included sources like Wikipedia, millions of digitized books, academic articles and Reddit.