17-5-2024 (SAN FRANCISCO) Reddit has announced a strategic partnership with OpenAI to integrate the social media platform’s content into the popular chatbot, ChatGPT. The news, revealed on Thursday, saw Reddit’s shares surge by 12 per cent in after-hours trading.
This collaboration marks a significant step in Reddit’s efforts to diversify its revenue streams by utilising its vast repository of user-generated content for the training of artificial intelligence models. By aligning with OpenAI, Reddit aims to enhance the capabilities of AI systems, leveraging the rich, varied data from its platform.
As part of this agreement, OpenAI will also become a Reddit advertising partner, further solidifying the commercial bond between the two tech entities.
Reddit’s move to partner with OpenAI follows a lucrative agreement earlier this year with Alphabet’s Google, reportedly valued at around $60 million annually. This previous deal highlights Reddit’s growing strategy to monetise its content through collaborations with leading technology firms.
