From Yahoo Finance.: 2024-05-16 18:53:58

Reddit Inc. partners with OpenAI to bring Reddit content to chatbot ChatGPT, introducing new AI features to forums. Shares of Reddit surge 15% after announcement. OpenAI can now display and train AI systems on Reddit data. Reddit will offer users new AI tools and OpenAI will place ads on site. Financial terms undisclosed. Reddit’s data has been valuable for training AI models, leading to new revenue opportunities through licensing agreements.

Reddit has signed multiple licensing deals totaling $203 million with terms ranging from two to three years. OpenAI, backed by Microsoft, partners with media companies to train its AI systems. CEO Sam Altman has a history with Reddit, being one of the company’s largest shareholders. Partnership led by OpenAI COO Brad Lightcap, approved by independent directors.

Shares of Reddit initially declined in regular trading but surged after partnership announcement. Stock has gained 66% since IPO. OpenAI also recently struck deals with Dotdash Meredith and the Financial Times. Partnership aims to enhance AI capabilities and display real-time content within ChatGPT. Reddit CEO sees value in data and interest from developers.



Read more at Yahoo Finance.: Reddit Forges Pact With OpenAI to Bring Content to ChatGPT