Reddit's anticipated initial public offering (IPO) is currently enjoying huge demand, with interest in the stock outpacing supply by a factor of four to five, according to Reuters. The interest increases the likelihood that the social media platform will reach its target market cap of US$6.5 billion when it goes public.

Reddit has already made an unsuccessful attempt to go public in 2021 and is now gearing up for another attempt, driven by the growing enthusiasm around generative artificial intelligence. Reddit plans to leverage AI through a partnership with Google, which will gain access to Reddit's data API, allowing it to use Reddit's real-time content to train AI models. In return, Reddit will gain access to the Vertex AI service and open up revenue opportunities through licensing arrangements.

The company's annual revenue in 2023 was $804 million, up 20% from the previous year. Despite this increase, the company recorded a net loss of $90.8 million for 2023, an improvement over the net loss of $158.6 million incurred in the prior year. The company's shareholders include Advance Publications, Tencent and, among others, Sam Altman, CEO of OpenAI, who served on Reddit's board from 2015 to 2022.