Reddit partners with OpenAI

Shares in Reddit have jumped more than 10% after the firm said it had struck a partnership deal with artificial intelligence firm OpenAI.

The partnership, announced last week, allows Reddit to leverage OpenAI's technology to build tools and features, and OpenAI's ChatGPT platform to integrate Reddit's content in a "real-time, structured" manner. OpenAI will also become an advertising partner for Reddit.

Under the agreement, the company behind the ChatGPT chatbot will get access to Reddit content, while it will also bring AI-powered features to the social media platform.

The deal delivers on Reddit's "IPO promise of seizing opportunities to make more of AI, and highlights Reddit's efforts to broaden its income sources away from advertising.

Reddit already has data licensing agreements with undisclosed firms that are projected to contribute at least $66.4 million in revenue this year. The license allows third parties to access, search, and analyse data on the platform.

Microsoft has invested billions of dollars in OpenAI for an exclusive license to the underlying technology behind OpenAI’s GPT. Microsoft is integrating AI into it’s offerings.

The deal between Reddit and OpenAI comes amidst a growing number of lawsuits against OpenAI, with firms alleging unauthorised use of their content for training large language models.

- CyberBeat