What you need to know
- Last week, it was reported that Reddit was blocking Bing, but not because it had an exclusive deal with Google.
- Google’s deal with Reddit is reportedly worth $60 million, and as a result, it can use its AI tools on Reddit to enhance Google search results.
- Now, Reddit CEO Steve Huffman says Microsoft refuses to negotiate with them and that blocking Redmond has been a “real pain in the ass.”
- Ironically, OpenAI’s new SearchGPT does agree with Reddit and can show search results.
As someone who has witnessed the rise and fall of numerous tech giants over the years, I must say, the latest tussle between Reddit and Microsoft (with Google, OpenAI, and Anthropic thrown into the mix) is nothing short of intriguing. It’s akin to watching a high-stakes poker game where each player is trying to bluff their way to the pot.
As someone who has been closely following the tech industry for years, I find myself once again drawn into the latest saga between tech giants Microsoft, Reddit, OpenAI, and Google. Last week, I learned that Microsoft’s Bing search engine is apparently not providing AI-powered summaries as it used to, due to a lack of a deal with Reddit to use their data. This development caught my attention because I have always admired the innovative spirit of these companies and how they shape our digital world.
Although the statement is correct, it seems that the initial Reddit PR comment suggested ongoing negotiations between Microsoft and other AI search competitors like Anthropic and Perplexity. However, what was actually indicated was that these companies have been engaged in discussions, but as of yet, they haven’t reached an agreement due to certain parties being unwilling or unable to provide enforceable promises concerning the use of Reddit content for AI purposes.
Currently, Reddit’s CEO Steve Huffman is stating more directly in a recent interview with The Verge that Microsoft appears unwilling to engage in negotiations with Reddit. He implies that this reluctance may stem from Microsoft not wanting to spend any money on acquiring the valuable data provided by Reddit.
That’s a very different spin from “unable to reach agreements”.
Microsoft hasn’t yet addressed the claim made by The Verge, which keeps a degree of doubt hanging in the air until they do.
Furthermore, Huffman expresses that it’s quite a hassle to prevent these corporations from mining their site for data to train their AI. On the other hand, Microsoft is adhering to the robots.txt protocol, thereby abstaining from scraping Reddit’s data.
Where all of this goes remains to be seen.
If Microsoft aspires to establish credibility as a search engine, overlooking Reddit and providing users another incentive to use Google might appear contradictory to expanding market share. Conversely, when Microsoft strikes a deal with Reddit, it may find itself negotiating with all digital publishers (including Future plc, the owner of Windows Central), which could be advantageous for publishers but detrimental to Microsoft’s profits as they would receive all the data for free.
OpenAI, one of Microsoft’s major AI partners, has secured access to Reddit’s data due to a deal they made earlier this year. This agreement is aimed at improving their newly launched SearchGPT engine.
Investors are growing restless about Microsoft’s substantial investment in artificial intelligence, yet there seems to be minimal return so far. Meanwhile, companies such as OpenAI are experiencing financial strain due to the high cost of expansion outpacing the development of consistent revenue streams, since consumers perceive little value from these advancements. A recent survey even suggests that around 30% of AI projects could be terminated after the proof-of-concept phase by 2025, which doesn’t make things any easier in this respect.
So, will Microsoft end up paying? We’ll have to wait and see.
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2024-08-01 00:39