Reddit experiences significant growth after unveiling partnership with OpenAI for AI training models

The trading floor of the New York Stock Exchange is abuzz with excitement as Reddit shares surged 11% in extended trading on Thursday. This surge came after the social media company announced a groundbreaking partnership with OpenAI. This partnership will allow OpenAI, the maker of the ChatGPT AI, to train its artificial intelligence models using Reddit content.

As part of the deal, OpenAI will gain access to Reddit’s Data API, providing real-time, structured, and unique content from the platform. In return, Reddit will offer AI features powered by OpenAI to its users and moderators. This collaboration is a significant step for both companies, with Google announcing a similar partnership with Reddit earlier this year.

Reddit CEO Steve Huffman expressed his enthusiasm for the partnership, stating that Reddit has become a valuable source of authentic and relevant human conversations. He believes that including Reddit in ChatGPT will help connect people and communities online.

OpenAI CEO Sam Altman, a former board member and major shareholder in Reddit, has a stake in the company valued at about $750 million. The deal was spearheaded by OpenAI Chief Operating Officer Brad Lightcap and approved by the company’s board.

In addition to the partnership, OpenAI recently launched a new AI model and desktop version of ChatGPT, offering improved capabilities in text, video, and audio. The company plans to eventually enable users to video chat with ChatGPT, further expanding its functionality.

The partnership with OpenAI is another positive development for Reddit, following a recent rally in meme stocks like GameStop. Reddit went public in March and quickly reached a record close shortly after its IPO. The company is now trading near its high of $65.11, continuing to attract investor interest.

Overall, the partnership between Reddit and OpenAI marks a significant milestone in the development of AI technology and its integration with social media platforms. Both companies are poised to benefit from this collaboration, with exciting opportunities on the horizon for ChatGPT and Reddit users alike.

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