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…
Reddit’s business model was not founded on selling LLM data. Reddit got greedy and decided to change their business model to cash in on an unexpected revenue stream. What was also unexpected (to Reddit) is that you cannot cater to social media users and monetize their data for LLM training effectively at the same time. And now Reddit will have neither, and will die just like all other businesses that adopt Enshitification as a core operating procedure.
Let this be a lesson to them and all that follow: do not let your greed make you blind to the consequences of your actions.