Reddit announces another big data-sharing AI deal — this time with OpenAI
- OpenAI and Reddit are teaming up together in a new partnership.
- Reddit's content will be brought to ChatGPT.
OpenAI and Reddit announced a new partnership on Thursday in a move that will bring the social media platform's popular content to ChatGPT.
The mutually beneficial deal will help Reddit to further diversify its revenue streams.
"OpenAI will bring enhanced Reddit content to ChatGPT and new products, helping users discover and engage with Reddit communities," the companies said in a joint statement.
OpenAI will also gain access to Reddit's Data API, which will enable the company's AI tools to "better understand and showcase Reddit content, especially on recent topics," according to the announcement.
Reddit, meanwhile, will gain a new advertising partner in OpenAI. The value of the deal was not disclosed.
The news sent Reddit shares soaring $12 in extended trade, Reuters reported.
OpenAI CEO Sam Altman, who holds a sizable stake in Reddit, already reaped a windfall earlier this year when the company went public in March. The Thursday announcement included a disclosure of Altman's shareholder status, confirming the partnership was led by OpenAI's COO and approved by its independent board of directors.
Earlier this year, Reddit struck a similar partnership with Google. The search engine will pay Reddit $60 million a year for access to its content to train AI.
At the time of the Google announcement, some Reddit users expressed concerns about the company making money off its users' data without their permission. Others, meanwhile, raised concerns about how an AI trained on Reddit content might act. The OpenAI announcement comes on the heels of a successful first quarter for Reddit as a newly public company. The platform outdid analysts' expectations earlier this month, reporting revenue of $243 million.