Reddit Inc. has partnered with OpenAI to bring its content to the chatbot ChatGPT and other products. This collaboration will also help Reddit enhance its forums with new artificial intelligence features. As a result, Reddit’s shares surged by 15% in late trading after the announcement.
OpenAI and Reddit have announced a partnership that will improve OpenAI’s AI tools and allow them to better understand and showcase Reddit content. As part of the deal, OpenAI will have access to Reddit’s content and will be able to train its AI systems using the data. In return, Reddit users will benefit from new AI-based tools created by OpenAI, and OpenAI will be able to place ads on Reddit’s site. The financial details of the partnership have not been disclosed.
Reddit has introduced new policies for the use of its data, aiming to generate revenue through licensing agreements with AI developers and other companies. CEO Steve Huffman believes that the platform’s data is highly valuable and has seen significant interest from various parties.
Reddit, the social media platform, is exploring new ways to make money ahead of its upcoming initial public offering (IPO). In January, the company signed a $60 million deal with Google to train large language models, which are the foundation of generative artificial intelligence (AI) technology. This move highlights Reddit’s efforts to tap into the potential of AI and expand its revenue streams.
Reddit has signed licensing deals worth $203 million in total. These deals determine how long a Reddit summary can appear in Google search results and whether licensees have to display Reddit branding in AI-generated results. The social network is also in talks to secure more licensing agreements.
OpenAI continues to strengthen its ties with media companies to enhance its AI systems and provide up-to-date content in its chatbot. Recently, the company partnered with Dotdash Meredith, the publisher of People Magazine, and in April, it signed a deal with the Financial Times.
Microsoft-backed startup OpenAI, known for its work in artificial intelligence (AI), has joined forces with Reddit. OpenAI CEO, Sam Altman, who has a history with Reddit, will lead the partnership. The collaboration was approved by OpenAI’s independent directors.
Shares of Reddit, the popular online platform, experienced a significant increase in value after announcing a partnership. The stock initially declined in regular trading but then surged to as high as $64.75. Overall, since its initial public offering (IPO), Reddit’s stock has risen by an impressive 66%.