Reddit Shares Surge 12% Following OpenAI Partnership

Reddit has announced a partnership with OpenAI to integrate its social platform with the ChatGPT chatbot and other AI products from the company.

Reddit and OpenAI today announced a partnership to benefit both the Reddit and OpenAI user communities in a number of ways. Learn more on our corporate blog. https://t.co/qah9TaRjVU

— Reddit (@Reddit) May 16, 2024

Under the agreement, Sam Altman’s startup will gain access to the site’s API, which “provides structured and unique Reddit content in real-time.” 

This will enable OpenAI’s artificial intelligence tools to better understand and interact with posts on the platform, especially recent ones. 

The partnership will also offer Redditors and moderators new AI-based features. Additionally, OpenAI will become an advertising partner for the social platform. 

“We are excited to collaborate with Reddit to enhance ChatGPT with unique, up-to-date information and explore opportunities to enrich the project experience with AI-based products,” noted OpenAI’s Executive Director Brad Lightcap. 

According to Google Finance, on May 16, Reddit’s shares fell by 5.45%, but after the announcement, they rebounded by 12% to $63.4. 

In February, Reddit signed a similar $60 million contract with Google, allowing the corporation to train its AI models on the social network’s content.

Earlier, the platform began charging companies for API access when used for data collection aimed at training large language models.

Back in May, Bloomberg reported that Apple had reached an agreement with OpenAI to implement the startup’s technology in iPhones.