OpenAI has partnered with Reddit to integrate its content into ChatGPT and other company products and access Reddit's content through its application programming interface (API).
The deal that boosted Reddit’s stock by 12 per cent on Thursday underscores Reddit’s recent partnership with Alphabet, which aims to train Google's AI models with its content.
OpenAI will also become a Reddit advertising partner, the company said.
"OpenAI will bring enhanced Reddit content to ChatGPT and new products, helping users discover and engage with Reddit communities. To do so, OpenAI will access Reddit’s Data API, which provides real-time, structured, and unique content from Reddit," the company said in a statement on Thursday.
Steve Huffman, Reddit Co-Founder and CEO, said, "Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up to date human conversations about anything and everything. Including it in ChatGPT upholds our belief in a connected internet, helps people find more or what they’re looking for, and helps new audiences find community on Reddit."
Reddit launched its IPO in March. Before that the company secured a deal with Alphabet worth approximately $60 million annually.
Investors see selling data for AI training as a significant revenue stream alongside Reddit's ads.
In its recent earnings report post-IPO, Reddit showcased revenue growth and better profitability, suggesting that its Google deal and efforts to expand its ads business were yielding positive results.
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