Reddit skyrocketed after announcing an OpenAI deal on training AI models
The trading floor of the New York Stock Exchange prepares for the initial public offering of social media platform Reddit in New York City on March 21, 2024.
Spencer Platt | beautiful images
Reddit Shares rose 11% in extended trading Thursday after the social media company announced The partnership with OpenAI will enable ChatGPT maker training artificial intelligence model on Reddit content.
As part of the agreement, OpenAI will have access to Reddit’s Data application programming interface, or API, “delivering 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, allowing the company to train its AI models, such as Gemini, on Reddit content through access to the platform’s API.
“Reddit has become one of the Internet’s largest open repositories of authentic, relevant, and always-up-to-date human conversations about anything and everything,” said CEO Steve Huffman in announcement on Thursday. “Including it in ChatGPT strengthens our belief in a connected Internet, helping people find more or what they’re looking for, and helping new audiences find community on Reddit. “
OpenAI CEO Sam Altman is a former board member and majority shareholder of Reddit, with shares worth approximately 750 million USD after pop music on Thursday. OpenAI CEO Brad Lightcap led the deal and was approved by the company’s board, the release said.
Earlier this week, OpenAI launched 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. Chief Technology Officer Mira Murati said Monday during a livestreamed event that the update brings GPT-4 to everyone, including OpenAI’s free users.
Murati says the new model, the GPT-4o, is “much faster” with improved text, video and audio capabilities. OpenAI says it plans to allow users to video chat using ChatGPT.
For Reddit, the deal provides another ray of light after a rally on Monday and Tuesday tied to a broader rise in so-called meme stocks such as GameStop. Reddit, that to the community in March and hit a record close days after its initial public offering, trading back near its peak of $65.11.
CLOCK: OpenAI co-founder and chief scientist leave the company
