Reddit And OpenAI Partner To Bring Content To ChatGPT
JAKARTA - Reddit has partnered with OpenAI to bring its content to the popular ChatGPT chatbot. They announced this on Thursday, May 16. This news caused the social media platform's stock to rise 12% in trading after working hours.
This deal confirms Reddit's efforts to diversify revenue outside of its advertising business. Previously, Reddit had also partnered with Alphabet, the Google owner, to make its content available to train Google's AI model, Gemini.
Reddit and OpenAI today announced a partnership to benefit both the Reddit and OpenAI user communities in a number of ways. Learn more on our corporate blog. https://t.co/qah9TaRjVU
— Reddit (@Reddit) May 16, 2024
Reddit and OpenAI today announced a partnership to benefit both the Reddit and OpenAI user communities in a number of ways. Learn more on our corporate blog. https://t.co/qah9TaRjVU
ChatGPT and other OpenAI products will use the Reddit application programming interface (API) to distribute Reddit content, following this new partnership. In addition, OpenAI will also become Reddit's advertising partner.
Ahead of Reddit's IPO in March, Reddit also struck a deal with Alphabet worth around US$60 million (Rp9.6 trillion) per year. Investors see data sales to train AI models as a key source of revenue outside the Reddit advertising business.
SEE ALSO:
Earlier this month, the social media company reported strong revenue growth and increased profitability in its first earnings report since its debut in the market, suggesting that deals with Google and efforts to boost its advertising business paid off.
Reddit shares rose 10.5% to 62.31 US dollars (Rp1,003,814) after the close. Since Wednesday's close, May 15, these shares have risen nearly 12% since their market debut in March.