AI Inverts the Business Model of the Internet

Last week, Reddit filed their S-1 to go public. At least 10% of their revenue - about $60m - comes from selling data to train Large Language Models.

Data sales invert the business model of the Internet.

Instead of Reddit building product experiences that create good advertising data to earn more on ads, Reddit will launch product experiences that produce more valuable data to feed to LLMs. The LLM vendors should pay more for better data.

User data remains the currency of the realm, but it’s packaged & sold in a very different way.

• Ai
• Business