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.
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I really wanted that site to crash and burn. Oh well.
Who the fuck is Alice? (if you do not get this reference, Gompie is what you’re looking for.)
Fuck Spez
(Hey noone else said it in this thread so I think I have to)
Deceased users’ estates still haven’t agreed to the new terms, have they?
After selling user generated content to Ai.
Doesn’t seem like that gravy train will roll on forever
ok now i am 100% sure im hoping for an ai bubble
apparently, the path to profitability was “shamelessly sell out on AI hype bullshit”
Well and behind it is stealing other peoples’ work (posts and comments, moderation and administration) 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.
No one is arguing that they don’t have the legal right.
But they believe they have the moral right, and they do not.
I never was arguing against that. Also I’m pretty sure their moral compass was pushed by the feds until he topped himself, so nothing about their bullshit has surprised me since.
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…
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.
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.
I know this might sound a little condescending, but why are you torturing yourself by not using an adblocker?
I was using the mobile app.
That app is a special kind of inhuman torture.
Yikes.
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
As I often mention in other communities, this smells like value
exploitationextraction* from a distance. Valueexploitationextraction 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.
*EDIT REASON: I switched the terms, sorry. (C’mon, I’m L3.)
this comment in one of the cross-postings seems relevant: https://lemmy.world/comment/13157556
Yup, it is 100% relevant! Selling user data is extremely profitable, specially with a large userbase. However, it lowers the value of the platform - it makes users less eager to genuinely contribute with it (due to privacy concerns, seeing it as a “they’re exploiting me!” matter, etc.). As such the data being generated there becomes less useful, less relevant, and less profitable over time, paradoxically enough.
value exploitation
I tried searching that term but had no luck any article I could use to know more?
I fucked it up and switched the terms, sorry. Look for “value extraction” instead; you’ll find multiple references to the concept such as this or Mazzucato’s “The Value of Everything”.
To keep it short: you create value when you produce desirable goods/services for the customers; however, when you extract it, you’re picking the value that was already created (by society, your customers, or even your own business) and turning it into profit. The later is faster but unsustainable, as that value doesn’t pop up from nowhere, so when a business shifts from value creation to value extraction it’ll get some quick cash and then go kaboom.
In Reddit’s case, this value is mostly users willing to generate, curate, and share content with the platform, and other users knowing this:
- someone recommends you a product/brand. The person might be wrong, but you were reasonably sure that they aren’t a corporation astroturfing their own product. Someone else might criticise it instead.
- you hop into your favourite subreddit and, while the content there isn’t the best, it’s still good enough - because the mods gave some fucks about growing their subreddits;
- you discuss some controversial topic. You might get dogpiled, but at least you know that the dogs piling you are human beings, that sometimes might listen to reason; a bot will never;
- et cetera.
All that value was being slowly extracted through the last years, but the changes in 2023/2024 did it the hardest.
Have to wonder how many of these “users” are actually people too. I’d bet most of them aren’t.
I think that most users there are still human beings, but botting has become a big enough problem that the platform can’t be seen as a place for genuine content any more.
That’s all well and good, but it comes at the expense of the user experience.
NPCs don’t mind
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.
Who would have thought, that it would one day be a weapon against ai.
The loser remains a loser, but he’s not losing money.
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?
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
