The trading floor of the New York Stock Exchange is preparing for the initial public offering of social media platform Reddit in New York on March 21, 2024.
Spencer Platt | Getty Images
Reddit shares jumped 11% in extended trading Thursday after the social media company announced a partnership with OpenAI that will allow ChatGPT’s creator to train its AI models on Reddit content.
As part of the deal, OpenAI will gain access to Reddit’s data programming interface, or API, “which provides real-time, structured and unique content from Reddit,” according to a release.
In return, Reddit will begin offering certain AI features to users and moderators powered by OpenAI, which will also become Reddit’s advertising partner. Google announced a similar partnership with Reddit in February, which allows the company to train its AI models, such as Gemini, on Reddit content by accessing the platform’s API.
“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,” CEO Steve Huffman said in Thursday’s release. “His inclusion in ChatGPT supports 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 CEO Sam Altman is a former board member and major shareholder in Reddit, with a stake valued at about $750 million after Thursday’s listing. OpenAI COO Brad Lightcap led the deal, which was approved by the company’s board, the release said.
Earlier this week, OpenAI released a new AI model and desktop version of ChatGPT, along with an updated user interface, the company’s latest effort to expand the use of its popular chatbot. The update makes GPT-4 available to everyone, including free OpenAI users, chief technology officer Mira Murati said Monday in a live event.
Muratti said the new model, the GPT-4o, is “much faster” with improved text, video and audio capabilities. OpenAI said it plans to eventually allow users to video chat with ChatGPT.
For Reddit, the deal provides another spark after Monday and Tuesday’s rally tied to a broader rally in so-called meme stocks, such as GameStop. Reddit, which went public in March and hit a record close days after its initial public offering, is again trading near its all-time high of $65.11.
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https://www.cnbc.com/2024/05/16/reddit-soars-after-announcing-openai-deal-on-ai-training-models.html
