Reddit’s latest earnings report has revealed an interesting insight—its content licensing deals with AI giants OpenAI and Google are bringing in a significant chunk of revenue. These partnerships collectively contribute around 10% of Reddit’s total earnings, roughly translating to $130 million annually.

Breaking it down further, Google reportedly pays about $60 million per year for access to Reddit’s user-generated content, while OpenAI’s share is estimated to be around $70 million annually. This hefty investment highlights how AI companies are relying on Reddit’s vast pool of discussions and data to improve their AI models.

Reddit’s Chief Operating Officer, Jen Wong, acknowledged the value of these AI deals, mentioning that while they don’t make up the bulk of Reddit’s revenue, they still represent a “valuable stream” for the platform. That said, advertising continues to be Reddit’s primary money-maker, with the company recording a 71% year-over-year increase in fourth-quarter revenue, hitting $427.7 million.

These developments show how Reddit is leveraging its massive user base and unique discussions to position itself as a crucial content provider in the AI space. By licensing its data to companies like OpenAI and Google, Reddit is securing new revenue streams while helping fuel advancements in AI technology.