Reddit’s advertising revenue grew to $315.1 million, while “other” revenue reached $33.2 million on account of “data licensing agreements signed earlier this year.” Both Google and OpenAI have cut deals with Reddit to train their AI models on its posts.
In a letter to shareholders, Reddit CEO Steve Huffman attributed the recent increase in users to the platform’s AI-powered translation feature. Reddit started letting users translate posts into French last year before expanding to Spanish, Portuguese, Italian, and German. Now, Huffman says Reddit plans to expand translation to over 30 countries through 2025.
98 million are bots
Indeed, you will note that they carefully chose the moniker “Daily Active Uniques” and not “Daily Active Users”.
I think that speaks volumes, as humans are definitely harder to retain.
apparently, the path to profitability was “shamelessly sell out on AI hype bullshit”
Well and behind is is stealing other peoples’ work (posts and comments) and selling them as yours. The oldest capitalist criminal trick in the book: privatization AKA primitive accumulation AKA enclosure of the commons.
I mean, to be fair, I’m nearly positive that the Reddit T&Cs will have said they retain rights to anything posted there for ages. And the AI bubble is already showing signs of deflation or bursting coming not too far down the line. Let them enjoy their first and hopefully only profitable year.
TBH, it feels like social media always needed some back door business like this to make it profitable.
It’s almost like human communication is not supposed to be a product or something…
A couple months ago, I logged into an old Reddit account. It only took a few minutes of scrolling before it happened.
I had to scroll back up and try again, and record my screen so I could doublecheck my count later.
35 ads or “recommended” posts (i.e. not from anything I subscribed to) in a row.
I’m curious what that means for the overall percentage of the average user’s feed.
Yikes.
Such a shame it turned out the way it did, but the writing was on the wall. Every single reddit announcement thread was a shit show aha. I guess in a way they were transparent about only being in it for the money. Their actions were always consistent
Really wonder how they plan to increase their revenue on the AI training data, especially now that a significant amount of their data is “poisoned” by the models they try to train
Dammit, all of you told me Reddit was going into the ground and I didn’t invest lol
Pffffffffffff…since when is it a good idea to get financial advice from randos on the internet?
That’s all well and good, but it comes at the expense of the user experience.
NPCs don’t mind
Congrats to them. Sad though that they had to go as low as selling their users out to AI training for that. And context sensitive advertisements in social media are also more a drag to society. But hey, they did it.
Maybe now they can shift to more ethical business models?
Maybe now they can shift to more ethical business models?
You can’t honestly expect that?
As I often mention in other communities, this smells like value exploitation from a distance. Value exploitation typically generates a peak of profit in the short term, but it makes losses even harsher in the long run.
As such I don’t think that Reddit is getting “bigger”. That profit is like someone who lives in a wooden house, dismantling their own home to sell it as lumber; of course they’ll get some quick cash, but it’s still a bad idea.
In a letter to shareholders, Reddit CEO Steve Huffman attributed the recent increase in users to the platform’s AI-powered translation feature.
Let’s pretend for a moment that we can totally trust Huffman’s claim here. Even human translations often get some issues, as nuances and whatnots are not translated, and this generates petty fights, specially in a younger userbase like Reddit’s; with AI tendency to hallucinate, that gets way worse. And even if that was not an issue, a lot of content is simply irrelevant for people outside a certain regional demographic.
I’m looking forward to LLMs copying the gibberish german communities like to use. It is very common there to translate things word for word without any regard for correct german grammar or understandibility.
