Reddit’s Big AI Content Licensing Deal

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Generative AI?was back in the headlines last weekend, starting with?Reddit's reported $60 million deal?with an unnamed AI company?to?license Reddit’s data (posts,?user-generated content, user data, etc.)?to train AI models.?The news comes as?Reddit?prepares to go public?in March?at?an expected $5 billion valuation?with this deal demonstrating additional ways of monetizing the platform’s data.?

While AI companies?have?already been training their models on the open web without explicit permission?of any copyright holders, they?have run into?legal complications?and concerns about the trademarks of intellectual property used to train the models.?If successful in creating more accurate, reliable, and vetted GenAI tools, this?deal?could?influence?other AI tools?to do the same. Of course, all of this?comes at a challenging time for Reddit.?Some?users have been less than pleased?with the platform's decisions?to monetize its data.

Meanwhile, Adobe is incorporating generative AI in a manner?that may prove more?appealing to consumers. After?announcing the launch of Firefly, a series of AI models to generate media content, last March, Adobe is now adding?a new chatbot?to its Acrobat PDF management software?with the goal?of "completely transforming the digital document experience."

According to a press release, the latest AI Assistant in Acrobat is available?as a “conversational engine”?in beta to all paying users?beginning?yesterday.?The new tool can significantly cut the amount of time needed to review documents by providing summaries, finding specific information, answering questions, and offering recommendations based on the content.?Unlike?the Reddit deal,?this AI assistant follows Adobe's security protocols, which means it cannot store or use customer data to train the model.?

Why it matters:??The prioritization of profit over consumer satisfaction remains a prevalent issue across all industries, especially with the continued focus on generative AI. With the increased concerns of consumers surrounding artificial intelligence, it is more important than ever for brands to ensure that the incorporation of AI takes privacy and ethical concerns into consideration, and that any moves to monetize data could alienate core users. While Reddit's deal?may?boost its value and?attract?investors?more interested?in AI-related tech?than social media platforms, it?seems to be clearly?harming?its relationship with its users. Alternatively, Adobe's approach applies its own security regulations to protect and cater to its user base.

Other news and trends

• Capital One?+?Discover Financial.?Capital One is slated to acquire Discover Financial?in an estimated $35 billion deal. A merger of two of the largest financial institutions in the country?could significantly impact the banking and credit card industries, as well as potentially reshape competitor and market dynamics.?And so while details of the deal remain undisclosed,?the months ahead will likely bring claims (from both Discover and Capital One)?about expanded product offerings?for consumers,?though regulators will look closely at any implications that?increased market share for Capital One?could bring,?especially following a period?of?increased regulatory scrutiny?for Discover.
• Solar eclipse flights.?For solar eclipse enthusiasts wanting a more immersive experience than?just their?backyards,?Delta Airlines is offering?tickets for a specialized flight to view?the eclipse, which will be taking place April 8, 2024. Passengers on the flight will have the unique opportunity to witness the eclipse from above the clouds, as the flight is designed to provide an optimal viewing opportunity with experts on board providing insights and guidance. Tickets for main cabin seats are priced at $1,357, more than double the average cost, but it may be worth it for some since this will be?the last visible total eclipse until 2044.
• Trending on TikTok: Reesa Teesa.?Reesa Teesa?has taken the TikTok community by storm with a detailed account of her marriage to her ex-husband under a series she calls?"Who TF Did I Marry?"?Through 50?videos uploaded over the span of a week, Teesa recounts the horrible experience and the red flags she ignored to end up marrying a "pathological liar."?Part One?received over 14 million views, and all subsequent 49 parts have?at least?a million views each.?Users?are posting their reactions,?dropping everything?to?"binge"?Teesa's videos.?

Contributors: Head of Social Content and Engagement Strategy Cristina Lawrence, Senior Vice President Jerry Lawrence, Group Vice President Andrew McKernan, and Senior Vice President Tammy Pepito.

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