One of Spez’s answers in the infamous Reddit AMA struck me
Two things happened at the same time: the LLM explosion put all Reddit data use at the forefront, and our continuing efforts to reign in costs…
I am beginning to think all they wanted to do was getting their share of the AI pie, since we know Reddit’s data is one of the major datasets for training conversetional models. But they are such a bunch of bumbling fools, as well as being chronically understaffed, the whole thing exploded in their face. At this stage their only chance if survival may well be to be bought out by OpenAI…
I think this is the main reason for the insane prices, but it could have easily been avoided. They don’t need to have one price class for every type of use of their Data API. They could have easily had one rate for LLM and other AI training uses and another for third party client applications. I feel like at some point they realized they’d rather just kill the third parties while they’re at it and this seemed like the logical moment.
Yeah, one of the other answers to the AMA was “we are not profitable yet, unlike the 3rd part app devs…” - that is something that wouldn’t sit well with any investor I know