From Yahoo Finance: 2024-05-17 09:40:03

Shares of Reddit surged 14% after a partnership with OpenAI for an AI-enhanced experience on the platform, attracting more users and advertising revenue. Stock trading at $63.75, close to its highest price in March. Deal leverages OpenAI technology to enhance user experience and create real-time structured content integration.

Reddit aims to diversify income beyond advertising, exploring new monetization channels like licensing data to third parties. Already generating revenue through data licensing agreements worth at least $66.4 million this year. The company went public on March 21, with shares gaining 66% from IPO price of $34.

Despite Reddit’s success, OpenAI faces lawsuits for alleged unauthorized use of content. OpenAI recently struck content licensing deals with major publishers like Associated Press and Financial Times. The partnership with Reddit signals a step towards maximizing AI capabilities for user experience improvement and content creation.

Read more at Yahoo Finance: Reddit shares jump after OpenAI partnership deal