Herb Greenberg claims that Reddit's IPO is an "AI play."

• Herb Greenberg, Editor of "Herb Greenberg | On the Street" on Substack, stated on CNBC's Last Call Thursday that Reddit is an AI play.
• In its IPO filing, the social media company disclosed its plans to explore licensing its data as a potential new source of revenue growth.

Reddit reported a 20% revenue growth for 2023 and stated that its core business is centered around online advertising sales. However, the social media company has the potential to attract more than just advertisers.

Herb Greenberg, Editor of "Herb Greenberg | On the Street" on Substack, stated on CNBC's Last Call Thursday that this is an AI play.

Greenberg stated that the prospectus's initial section highlights the company's use of the product to train large language models.

On Thursday, Reddit struck a $60 million deal with a tech giant to use its data to train AI models.

Greenberg stated, "They discuss the revenue they expect to generate from licensing that data. Nevertheless, it can be argued that the majority of the valuable data has already been given away, and they are only now beginning to license it."