this post was submitted on 30 Oct 2024
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Reddit’s advertising revenue grew to $315.1 million, while “other” revenue reached $33.2 million on account of “data licensing agreements signed earlier this year.” Both Google and OpenAI have cut deals with Reddit to train their AI models on its posts.

In a letter to shareholders, Reddit CEO Steve Huffman attributed the recent increase in users to the platform’s AI-powered translation feature. Reddit started letting users translate posts into French last year before expanding to Spanish, Portuguese, Italian, and German. Now, Huffman says Reddit plans to expand translation to over 30 countries through 2025.

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[–] alyaza@beehaw.org 177 points 3 weeks ago (3 children)

apparently, the path to profitability was "shamelessly sell out on AI hype bullshit"

[–] JRepin@lemmy.ml 77 points 3 weeks ago* (last edited 3 weeks ago) (1 children)

Well and behind it is stealing other peoples' work (posts and comments, moderation and administration) and selling them as yours. The oldest capitalist criminal trick in the book: privatization AKA primitive accumulation AKA enclosure of the commons.

[–] SturgiesYrFase@lemmy.ml 15 points 3 weeks ago (2 children)

I mean, to be fair, I'm nearly positive that the Reddit T&Cs will have said they retain rights to anything posted there for ages. And the AI bubble is already showing signs of deflation or bursting coming not too far down the line. Let them enjoy their first and hopefully only profitable year.

[–] Kichae@lemmy.ca 22 points 3 weeks ago (2 children)

No one is arguing that they don't have the legal right.

But they believe they have the moral right, and they do not.

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[–] Rooskie91@discuss.online 29 points 3 weeks ago (1 children)

TBH, it feels like social media always needed some back door business like this to make it profitable.

[–] Sabata11792@ani.social 29 points 3 weeks ago

It's almost like human communication is not supposed to be a product or something...

[–] teawrecks@sopuli.xyz 20 points 3 weeks ago

Which is a good reminder to everyone to support your local Lemmy instances.

[–] kibiz0r@midwest.social 72 points 3 weeks ago* (last edited 3 weeks ago) (3 children)

A couple months ago, I logged into an old Reddit account. It only took a few minutes of scrolling before it happened.

I had to scroll back up and try again, and record my screen so I could doublecheck my count later.

35 ads or “recommended” posts (i.e. not from anything I subscribed to) in a row.

I’m curious what that means for the overall percentage of the average user’s feed.

Edit: Okay yall... I appreciate all of the free technical support, but it's really not needed. I was just documenting some findings.

But since everyone is so concerned about improving my Reddit experience, here are a few things to consider:

  • I'm a mobile dev, so I don't mind enduring a shitty UX for the sake of finding out what other companies are doing with their apps. If I'm going in with a mindset of curiosity, it really doesn't bother me. In fact, I want to see the worst parts.
  • Even if I had been going in just to have a pleasant scrolling experience, the reason I opened Reddit at all is because my wife had my phone for a while (due to toddler nonsense, we had swapped phones and she was stuck sitting in the hallway for a few minutes) and she had decided to open the app, so the decision of app vs. website was kinda made for me already.
  • Even if she had considered using the website instead, I wasn't logged in because I only use private browsing (again, mobile dev, so when testing web flows I like to make sure there is no saved web data).
  • Even if I was already logged in, it's an iPhone. While I do use an ad-blocker, the ad-blocking capabilities of Safari are pretty limited, so I'm not sure it would've improved much.
  • Even if I was on Android, I'd probably still not have any extensive ad-blocking enabled, because I want to stay relatively vanilla in my setup to reduce confounding factors when testing.
  • Even if there was a genuine opportunity here for my setup to be improved... I didn't ask for that, and swarming people with "have you considered doing it the right way?" when they're just making a basic observation doesn't create a great atmosphere for the overall Lemmy experience.
[–] DdCno1@beehaw.org 23 points 3 weeks ago (1 children)

I know this might sound a little condescending, but why are you torturing yourself by not using an adblocker?

[–] kibiz0r@midwest.social 11 points 3 weeks ago (3 children)

I was using the mobile app.

[–] DdCno1@beehaw.org 36 points 3 weeks ago

That app is a special kind of inhuman torture.

[–] fushuan@lemm.ee 7 points 3 weeks ago

Android Firefox has access to adblockers though??

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[–] barsoap@lemm.ee 63 points 3 weeks ago (1 children)

Fuck Spez

(Hey noone else said it in this thread so I think I have to)

[–] butter@midwest.social 14 points 3 weeks ago

This is important for everyone to hear regularly. Thank you

[–] Blackout@fedia.io 59 points 3 weeks ago (1 children)
[–] qupada@fedia.io 49 points 3 weeks ago

Indeed, you will note that they carefully chose the moniker "Daily Active Uniques" and not "Daily Active Users".

I think that speaks volumes, as humans are definitely harder to retain.

[–] Pssdoff@beehaw.org 47 points 3 weeks ago (1 children)

The bot generated comments are training AI... full circle

[–] realitista@lemm.ee 7 points 3 weeks ago

It won't be long before the internet is just bots talking to each other and advertisers paying them to do so.

[–] thingsiplay@beehaw.org 46 points 3 weeks ago (1 children)

After selling user generated content to Ai.

[–] Midnitte@beehaw.org 26 points 3 weeks ago (1 children)

Doesn't seem like that gravy train will roll on forever

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[–] prex@aussie.zone 32 points 3 weeks ago
[–] Powderhorn@beehaw.org 31 points 3 weeks ago (1 children)

That's all well and good, but it comes at the expense of the user experience.

[–] iii@mander.xyz 15 points 3 weeks ago

NPCs don't mind

[–] Alice@beehaw.org 28 points 3 weeks ago (3 children)

I really wanted that site to crash and burn. Oh well.

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ok now i am 100% sure im hoping for an ai bubble

[–] NastyNative@mander.xyz 26 points 3 weeks ago

Just as we are all leaving for Lemmy. Reddit now makes you have an account to access some of their shit. Good riddance!

[–] Someplaceunknown@fedia.io 24 points 3 weeks ago (1 children)
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[–] NigelFrobisher@aussie.zone 23 points 3 weeks ago

I’m thinking AI-powered something is going on, for sure.

[–] lvxferre@mander.xyz 23 points 3 weeks ago* (last edited 3 weeks ago) (7 children)

As I often mention in other communities, this smells like value ~~exploitation~~ extraction* from a distance. Value ~~exploitation~~ extraction typically generates a peak of profit in the short term, but it makes losses even harsher in the long run.

As such I don't think that Reddit is getting "bigger". That profit is like someone who lives in a wooden house, dismantling their own home to sell it as lumber; of course they'll get some quick cash, but it's still a bad idea.

In a letter to shareholders, Reddit CEO Steve Huffman attributed the recent increase in users to the platform’s AI-powered translation feature.

Let's pretend for a moment that we can totally trust Huffman's claim here. Even human translations often get some issues, as nuances and whatnots are not translated, and this generates petty fights, specially in a younger userbase like Reddit's; with AI tendency to hallucinate, that gets way worse. And even if that was not an issue, a lot of content is simply irrelevant for people outside a certain regional demographic.

*EDIT REASON: I switched the terms, sorry. (C'mon, I'm L3.)

[–] OpenStars@discuss.online 6 points 3 weeks ago (1 children)

this comment in one of the cross-postings seems relevant: https://lemmy.world/comment/13157556

[–] lvxferre@mander.xyz 5 points 3 weeks ago* (last edited 3 weeks ago) (5 children)

Yup, it is 100% relevant! Selling user data is extremely profitable, specially with a large userbase. However, it lowers the value of the platform - it makes users less eager to genuinely contribute with it (due to privacy concerns, seeing it as a "they're exploiting me!" matter, etc.). As such the data being generated there becomes less useful, less relevant, and less profitable over time, paradoxically enough.

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[–] FartsWithAnAccent@fedia.io 6 points 3 weeks ago (1 children)

Have to wonder how many of these "users" are actually people too. I'd bet most of them aren't.

[–] lvxferre@mander.xyz 8 points 3 weeks ago (5 children)

I think that most users there are still human beings, but botting has become a big enough problem that the platform can't be seen as a place for genuine content any more.

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[–] haerrii@feddit.org 20 points 3 weeks ago

Really wonder how they plan to increase their revenue on the AI training data, especially now that a significant amount of their data is "poisoned" by the models they try to train

[–] Moah@lemmy.blahaj.zone 17 points 3 weeks ago

Well I'm glad my leaving the platform had such an impact, I never said

[–] CanadaPlus@lemmy.sdf.org 14 points 3 weeks ago* (last edited 3 weeks ago) (3 children)

Boo!

Whatever, this is far from the end of the story, and Lemmy has nothing but time. The bigger they are, the harder they fall in the end.

[–] realitista@lemm.ee 11 points 3 weeks ago (1 children)

I vividly remember the Digg migration and Reddit is so very much like Digg these days.

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[–] mspencer712@programming.dev 14 points 3 weeks ago

Deceased users’ estates still haven’t agreed to the new terms, have they?

[–] Kratzkopf@discuss.tchncs.de 13 points 3 weeks ago (2 children)

I'm looking forward to LLMs copying the gibberish german communities like to use. It is very common there to translate things word for word without any regard for correct german grammar or understandibility.

[–] django@discuss.tchncs.de 7 points 3 weeks ago

Who would have thought, that it would one day be a weapon against ai.

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[–] pineapple_pizza@lemmy.dexlit.xyz 12 points 3 weeks ago (1 children)

Dammit, all of you told me Reddit was going into the ground and I didn't invest lol

[–] SturgiesYrFase@lemmy.ml 11 points 3 weeks ago

Pffffffffffff...since when is it a good idea to get financial advice from randos on the internet?

[–] Sibbo@sopuli.xyz 11 points 3 weeks ago (4 children)

Congrats to them. Sad though that they had to go as low as selling their users out to AI training for that. And context sensitive advertisements in social media are also more a drag to society. But hey, they did it.

Maybe now they can shift to more ethical business models?

[–] thingsiplay@beehaw.org 12 points 3 weeks ago

They wouldn't, even if they knew how. Because unethical makes more money.

[–] iii@mander.xyz 8 points 3 weeks ago

Maybe now they can shift to more ethical business models?

You can't honestly expect that?

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[–] Megaman_EXE@beehaw.org 10 points 3 weeks ago

Such a shame it turned out the way it did, but the writing was on the wall. Every single reddit announcement thread was a shit show aha. I guess in a way they were transparent about only being in it for the money. Their actions were always consistent

[–] vodkasolution@feddit.it 9 points 3 weeks ago

The loser remains a loser, but he's not losing money.

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