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Elevate Magazine
February 23, 2024

Google and Reddit Forge Major Data Partnership

Reddit and Google form major data partnership

In an unexpected strategic development, Google has confirmed a partnership with Reddit, securing an exclusive arrangement to utilise Reddit’s vast data in enhancing its search functionality and generative AI projects. 

This alliance, worth $60 million annually, diverges from initial industry speculations that had hinted at OpenAI as the likely beneficiary, and highlights Google’s intention to solidify its dominance in search and generative AI.

Under the terms of the agreement, Google gains complete access to Reddit’s data for use with its search engine and Gemini AI models, enabling the further nuanced, user-generated content that Reddit is known for. 

This move reflects Google’s acknowledgment of the increasing trend among internet users to seek out authentic human experiences and advice, particularly in areas like product recommendations and travel tips, directly via Google search.

Google’s Vision for Enhanced User Experience

Google aims to streamline the integration of Reddit’s insightful content across its platforms.

“Over the years, we’ve seen that people increasingly use Google to search for helpful content on Reddit to find product recommendations, travel advice and much more. We know people find this information useful, so we’re developing ways to make it even easier to access across Google products.”

This strategy aims to address the growing scepticism around the authenticity of online reviews, positioning Reddit’s community-driven insights as a more trustworthy alternative.

Why is this Significant for Reddit?

Beyond financial gains, this deal represents a strategic advantage for Reddit, and direct integration with Google will help increase visibility for its forums across 100,000+ niche topics.

This collaboration marks a notable shift from Reddit’s earlier years, characterised by its unregulated content. Reddit’s substantial policy overhaul in 2020, which saw the platform distance itself from its most controversial elements, laid the groundwork for this high-profile partnership, aligning with its broader business and ethical objectives.

A Mutual Win with Broader Implications

While the financial boost from this deal is just a fraction of Reddit’s overall revenue, the enhanced visibility and integration into Google’s ecosystem could prove invaluable. 

This partnership not only reaffirms Google’s commitment to leveraging human-centred data for improving search but also signals a major endorsement of Reddit’s platform and its ongoing transformation.

As Reddit prepares for its forthcoming IPO, the details of this partnership could provide intriguing insights into its future direction and its role within the larger digital ecosystem.