Reddit Inc. is acquiring Memorable AI, a startup that uses generative artificial intelligence to help marketers create better ads. This marks Reddit’s first acquisition since going public in March.
Memorable AI, founded in 2021, has developed technology to assist advertisers in selecting the most effective text, images, and videos for their ads. Reddit aims to enhance ad quality on its platform through this acquisition.
“This acquisition allows Reddit to accelerate our work in optimizing, generating, and selecting ad creative to deliver even better results for advertisers,” said Reddit’s Chief Operating Officer, Jen Wong.
The Memorable AI team will join Reddit’s advertising team. While financial terms of the deal were not disclosed, it reflects Reddit’s continued investment in its advertising business and AI tools. Reddit, which earns about 98% of its revenue from advertising, reported $804 million in sales last year. The company has been expanding its advertising offerings, including shopping and video ads.
Additionally, Reddit has been forming partnerships with AI companies, including data licensing deals worth $203 million with firms like OpenAI and Google. In May, Reddit announced a collaboration with OpenAI to bring its content to ChatGPT and add new AI features to its forums. The company has previously acquired other AI startups to improve content recommendations and ad placements.
