Reddit and OpenAI Join Forces

Reddit Inc. has partnered with OpenAI to bring its content to ChatGPT and other products, boosting AI features on Reddit’s forums. This collaboration aims to enhance the AI’s understanding of Reddit content, particularly on trending topics.

Stock Surge Following Announcement

Following the announcement, Reddit’s shares jumped by 15%. This deal allows OpenAI to display Reddit content and train its AI systems using Reddit’s data, while Reddit users will benefit from new AI-based tools developed by OpenAI.

Monetizing Reddit’s Valuable Data

Reddit CEO Steve Huffman emphasized the value of Reddit’s data at the Bloomberg Technology Summit, noting significant interest and new data policies aimed at increasing revenue through licensing agreements.

Previous AI Partnerships

Earlier this year, Reddit signed a $60 million deal with Google to train large language models. Reddit’s licensing deals, now totaling $203 million, typically span two to three years.

OpenAI’s Growing Media Partnerships

OpenAI continues to partner with media companies to train its AI and provide real-time content, recently signing agreements with Dotdash Meredith and the Financial Times.

Reddit’s Market Performance

Reddit’s shares, which had fallen 5.5% to $56.38, soared to $64.75 after the partnership news. The stock has risen 66% since its IPO.