Reddit shares spike on OpenAI deal
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The news: Reddit has partnered with OpenAI to bring the social media platform's content to artificial intelligence chatbot ChatGPT.
The numbers: The joint announcement by the two companies sent Reddit's shares up 12% in extended trading on the Nasdaq.
The context: The deal was agreed "to benefit both the Reddit and OpenAI user communities in a numbers of ways", the companies said.
The partnership will see Microsoft-backed OpenAI bring "enhanced" Reddit content to ChatGPT, helping users discover and engage with Reddit communities. OpenAI will access Reddit's data application programming interface (API), which provides real-time content from the social media platform.
This is designed to improve OpenAI's tools to better understand and showcase Reddit content. It will also enable Reddit to bring new AI-powered features to its platform.
OpenAI will also become a Reddit advertising partner.
Earlier this month, Reddit shares jumped more than 15% after the company reported its first results since its US market debut in March.
On Wednesday, OpenAI announced its co-founder and chief scientist Ilya Sutskever will depart the company.
What they said: Reddit's co-founder and CEO Steve Huffman 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".
OpenAI COO Brad Lightcap said: "We are thrilled to partner with Reddit to enhance ChatGPT with uniquely timely and relevant information, and to explore the possibilities to enrich the Reddit experience with AI-powered features".
The sources: OpenAI media release, Reddit media release
