Reddit has acquired Memorable AI, a generative AI startup

Reddit Inc. has acquired Memorable AI, a startup specializing in generative AI for ad creation, marking its first acquisition since going public in March. Memorable AI's technology helps advertisers identify the most effective text, images, and videos for their ads, aiming to improve ad quality on Reddit. Founded in 2021, Memorable AI predicts the direct impact of ads, such as app downloads or website visits. The acquisition supports Reddit's ongoing investment in advertising and AI tools, which have been significantly expanded since 2018.

Reddit's ad business, which comprises 98% of its revenue, continues to grow, with innovative features like shopping and video ads. In addition to this acquisition, Reddit has signed data licensing deals with companies like OpenAI and Google and previously acquired AI firms Spell, MeaningCloud, and Spiketrap to enhance content recommendations and ad placement.

Source: Bloomberg