OpenAI Signs Partnership to Deliver Reddit Content to ChatGPT

OpenAI has worked with Reddit to integrate their content into ChatGPT. The agreement is intended to diversify Reddit's revenue streams beyond advertising. ChatGPT and other OpenAI products will use the Reddit API to access its content.

Credit: REUTERS

Reddit has teamed with OpenAI to deliver its content to popular chatbot ChatGPT, the firms announced on Thursday, driving shares of the social media network up 12% in extended trading.

The agreement highlights Reddit's efforts to diversify beyond its advertising business, and it follows a recent collaboration with Alphabet to make its material available for training Google's AI models.

Following the new relationship, ChatGPT and other OpenAI products will use Reddit's application programming interface, which is used to distribute content on the platform.

The business also announced that OpenAI will become an advertising partner on Reddit.

Prior to Reddit's March IPO, Reuters reported that the company had an agreement with Alphabet for approximately $60 million each year.

Investors see selling data to train AI models as a significant revenue source in addition to Reddit's advertising business.

The social network giant earlier this month announced excellent revenue growth and improved profitability in its first earnings after going public, signalling that its Google acquisition and push to develop its advertising business were paying off.

Reddit's stock increased 10.5% to $62.31 after the bell. As of Wednesday's close, the stock had gained about 12% since its market debut in March.

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• OpenAI has worked with Reddit to integrate their content into ChatGPT.

• The agreement is intended to diversify Reddit's revenue streams beyond advertising.

• ChatGPT and other OpenAI products will use the Reddit API to access its content.

Source: REUTERS