this post was submitted on 12 Jun 2023
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I don't think that makes sense as an explanation for killing off 3PA/API access. 3PAs would increase user base, and so collection of data, by virtue of providing more channels by which users can contribute and improving the experience for those people would likely increase their engagement. The mod tools that make use of the API would also help with curating that data, which increases its value to an AI consumer.
Cheap API access was letting the AI platforms pull Reddit data directly via API. That's why the "fix" was making API access expensive, so that buying the data from Reddit instead becomes the more cost-effective solution.
Reddit's not (as) worried about gathering more data to sell, they're worried about selling the years of data they already have.