Reddit Forges Pact with OpenAI
Reddit Inc. forged a partnership with OpenAI that will bring its content to the chatbot ChatGPT and other products, while also helping the social media company add new artificial intelligence features to its forums.
Tweet on Reddit and OpenAI collab
Reddit Inc. forged a partnership with OpenAI that will bring its content to the chatbot ChatGPT and other products, @OpenAI announced #openai #chatgpt #reddithttps://t.co/MZeUXn8wUe
— The_Journalbiz (@the_journalbiz) May 17, 2024
OpenAI announcement
Shares of Reddit, which had their initial public offering in March, were up 13.7% on Friday at 9:46 a.m. in New York.
The agreement “will enable OpenAI’s AI tools to better understand and showcase Reddit content, especially on recent topics,” the companies said Thursday in a joint statement. The deal allows OpenAI to display Reddit’s content and train AI systems on its partner’s data.
Reddit will also offer its users new AI-based tools built on models created by OpenAI, which will place ads on its partner’s site. Financial terms of the deal weren’t disclosed.
Reddit content has long been a popular source of training data for making AI models — including those of OpenAI. Last week, Reddit released new policies governing the use of its data, part of an effort to increase revenue through licensing agreements with artificial intelligence developers and other companies.
The shares of Reddit, which had declined 5.5% to $56.38 in regular New York trading Thursday, soared as high as $64.75 after the partnership was announced. The stock has gained 66% since its IPO.
