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Niche Pursuits Podcast: Find Your Next "Niche" Business Idea!
OpenAI Paid Reddit $70M. Should You Be Worried?
Feb 14, 2025
Thomas Smith, an expert in AI, SEO, and content creation, joins the discussion on Reddit’s $70M deal with OpenAI, revealing how 10% of Reddit's revenue stems from AI licensing. They explore the future of originality in content creation and its anticipated impact on SEO by 2026. The conversation also covers the ups and downs of the Amazon Influencer program, innovative side hustles like Green Mermaid Review, and the success behind snow forecasting site opensnow.com, illustrating the thriving potential of niche businesses.
01:00:29
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Quick takeaways
- Reddit's $70 million AI licensing deal with OpenAI highlights the monetization potential of user-generated content in reducing ad revenue dependence.
- The surge of YouTube citations in AI overviews signifies a growing demand for video content, particularly in instructional and e-commerce sectors.
Deep dives
Reddit's AI Licensing Deals and Revenue Insights
The discussion highlights Reddit's significant revenue stream from AI licensing deals, which reportedly accounts for about 10% of its total revenue. With yearly projections estimating Reddit's revenue to be around $1.3 billion, this translates to approximately $130 million originating from such licenses. OpenAI, known for developing ChatGPT, is paying about $70 million annually for access to Reddit's data, while Google pays $60 million for similar data. This indicates that user-generated content (UGC) sites, like Reddit, are beginning to leverage their conversational data as a substantial business asset, hinting at a potential reduction in ad revenue dependency.
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