Tomasz Tunguz Blog · 2024-02-27 · 828d

LLM Data Sales as the New Internet Business Model

As Large Language Models become increasingly valuable, companies like Reddit are generating significant revenue from data sales to LLM providers, potentially surpassing ad revenue. This shift could fundamentally invert the internet's business model, where publishers optimize for data quality and exclusivity rather than advertising performance. The transition raises critical questions about privacy, regulation, and the future viability of ad networks.

3 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Blog Subscriber Count

150000users

exact

Tomasz Tunguz newsletter subscribers

Reddit Data Sales Revenue

60$M

minimum

Reddit's LLM data licensing as of 2024

Reddit Data Sales Revenue Percentage

10%

minimum

Percentage of Reddit's total revenue from LLM data sales