Reddit Inc. (RDDT) saw its stock soar by 5.09% on Tuesday, during the intraday trading session, as investors remained bullish on the company's prospects in the rapidly growing artificial intelligence (AI) market.
The social media platform, known for its highly engaged user base and authentic discussions, has been actively capitalizing on the AI boom by licensing its vast trove of user-generated data to companies seeking to train their AI models.
According to reports, Reddit has already signed licensing agreements totaling $203 million, with terms lasting two to three years. The company generated approximately $20 million from AI content deals in the last quarter alone and expects to exceed $60 million by the end of the year.
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