Bloomberg reports that Reddit is signing a content licensing deal with an AI company ahead of its IPO

Reddit has signed a deal that will allow an artificial intelligence (AI) company to train its models on the social media platform's content, Bloomberg News reported, citing people familiar with the matter.

Reddit, which is considering an initial public offering (IPO), told potential investors that it signed the deal worth $60 million on an annualized basis earlier this year, the report said.

The details of the AI ​​deal could change as talks continue about Reddit's IPO, which could take place in March.

The content licensing agreement comes at a time when interest in AI is at an all-time high.

Reddit declined to comment.

The agreement, signed with an “unnamed major AI company,” could be a model for future deals of a similar nature, Bloomberg reported.

Reddit's IPO, which has been in the works for over three years, would be the first IPO by a major social media company since Pinterest (PINS.N) debuted in 2019.

The San Francisco-based company was valued at around $10 billion in a 2021 funding round.