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.
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