OpenAI and Reddit have announced a partnership to integrate Reddit’s content into ChatGPT, which has led to a 12% rise in Reddit’s shares during extended trading.
This move is part of Reddit’s effort to diversify its revenue beyond advertising. Reddit is also partnering with Alphabet to help train Google’s AI models.
As part of the agreement, OpenAI will access Reddit’s data through its API and become a Reddit advertising partner. This news has increased investor confidence, causing Reddit’s shares to jump 10.5%.
Reddit recently reported strong revenue growth and improving profitability, thanks to its partnerships and expansion in advertising.
The company went public in March, with shares rising nearly 12% since its market debut. Reddit is now seen as an important data provider in the AI industry due to its collaborations with major companies.
This partnership highlights how crucial data is for training AI models.
Reddit’s extensive content will improve ChatGPT’s responses by providing a wide range of information.
