Google has sealed a deal worth a whopping $60 million that enables it to utilize Reddit content for training its generative-AI models, as reported by Reuters on Thursday, citing three individuals familiar with the matter.

This claim follows a Bloomberg report earlier in the week stating that Reddit had inked such a deal, although at that time, the identity of the other party remained unclear.

Training AI models using human-generated content like that found on Reddit is supposed to assist chatbot tools in responding in a more natural and conversational manner, along with providing relevant and up-to-date information.

Reuters’ report emerges as AI companies seek new ways to leverage large amounts of online data without causing issues for those who own the copyright to it. It also coincides with Reddit’s announcement of its initial public offering plans, where it said it will list its shares on the New York Stock Exchange under the ticker symbol RDDT.

Up until now, most AI models that underpin tools like OpenAI’s ChatGPT or Google’s Gemini (formerly Bard) have been primarily trained on content scraped from the web. However, this method has raised alarm among authors, artists, publishers, and others as their copyrighted works are used without any form of recognition or, more importantly, financial compensation. Some are taking AI companies to court over copyright infringement, a situation that has prompted the AI tech firms to explore new ways to acquire content, such as through deals with sites like Reddit that hold vast amounts of valuable material.

The reported deal between Reddit and Google echoes a recent one made by Axel Springer that grants OpenAI access to the German media giant’s content for AI training – though this approach also has its own set of concerns. For instance, there are concerns that such deals will see the money flow directly into company coffers rather than being shared among those creating the content.

A Wired article in December highlighted this matter in relation to the Axel Springer deal, stating that it was “entirely unclear whether individual journalists will see any of that money. When asked if reporters would benefit from any revenue-sharing or additional compensation as a result of the licensing arrangement, Axel Springer did not directly answer the question… So, as of now, it is uncertain whether a writer whose work is incorporated into ChatGPT will receive a one-time payment, a recurring royalty-like payment, or no payment at all.”

Both Reddit and Google made announcements on Thursday describing a move towards closer collaboration in several areas, although neither directly mentioned the recently reported deal or its value.

Google said Reddit contained “an incredible breadth of authentic, human conversations and experiences,” while Reddit commented that its collaboration with Google “will make it easier for people to find, discover, and engage in content and communities on Reddit that are most relevant to them.”