Reddit has partnered with OpenAI to bring its content to popular chatbot ChatGPT, the companies said on Thursday, sending the social media platform’s shares up 12% in extended trade.
The deal underscores Reddit’s attempt to diversify beyond its advertising business, and follows its recent partnership with Alphabet to make its content available for training Google’s AI models.
ChatGPT and other OpenAI products will use Reddit’s application programming interface, the means by which Reddit distributes its content, following the new partnership.
OpenAI will also become a Reddit advertising partner, the company said.
Ahead of Reddit’s March IPO, Reuters reported that Reddit struck its deal with Alphabet, worth about $60 million per year.
Investors view selling its data to train AI models as a key source of revenue beyond Reddit’s advertising business.
The social media company earlier this month reported strong revenue growth and improving profitability in the first earnings since its market debut, indicating that its Google deal and its push to grow its ads business were paying off.
Reddit’s shares rose 10.5% to $62.31 after the bell. As of Wednesday’s close, the stock is up nearly 12% since its market debut in March.
US authorities on Wednesday said Iranian cyberattackers had offered "stolen, non-public" material from Republican presidential…
Disgraced Hollywood movie producer Harvey Weinstein pleaded not guilty on Wednesday to a new sex…
China will certainly be "high on the agenda" at the Quad Summit set to be…
The U.S. House of Representatives Foreign Affairs Committee subpoenaed Secretary of State Antony Blinken on…
The Indian Navy said that a MQ-9B Predator High Altitude Long Endurance Remotely Piloted Aircraft…
Elon Musk's X social network carried out an automatic update overnight on phone applications that…