Reddit to Charge for API Access; AI Blamed by CEO
Reddit, the popular social media site, has announced that large companies will soon be charged for access to its data. The company will also put a stop to large tech firms from using Reddit user content to train chatbots. Reddit plans to introduce a "new premium access point" to its application programming interface (API). This will offer additional capabilities, higher usage limits, and broader usage rights to those who subscribe. API controls how two differing programs interact with each other. The new pricing rules will be effective from June 19, although the company has not yet revealed details of tariffs. Reddit CEO Steve Huffman suggested to the New York Times that artificial intelligence (AI) was the reason for the changes.
Google and OpenAI have both previously stated that they have used Reddit data to train their large language models, which are behind Google's Bard and OpenAI’s ChatGPT. Steve Huffman believes that the value in Reddit comes from the “authentic conversation” that takes place on the platform. He argues that Reddit does not need to give away all of that value for free to some of the largest companies in the world. This change may be a big shift for developers who have previously accessed Reddit's data free of charge.
Twitter CEO, Elon Musk, introduced a similar move earlier this year, charging access fees, which could stretch into the tens or hundreds of thousands of dollars per month. Reddit's change is expected to hinder automated updates posted by accounts that share important news, such as natural disasters or extreme weather conditions. There are also concerns that Reddit's changes will impact third-party applications that display Reddit content.
Despite these changes, Huffman insists Reddit will continue to give free access to developers working to enhance customer experience, for example by building an automated program to assist with moderation. The company will also allow free access to researchers using Reddit data. However, there will be limits on access to "mature content" posted to the platform.
Monetizing Reddit's conversations could be a solution for the company as it prepares to go public in the second half of the year. Huffman believes that the company needs to address the issue of "generating value and not returning any of that value to our users."
