In pre-market trading on the New York Stock Exchange, Reddit Inc. shares surged approximately 14% following the announcement of a collaboration with OpenAI, the developer behind the widely acclaimed generative AI chatbot, ChatGPT.
This partnership will facilitate the integration of Reddit's content into ChatGPT and its associated products. Additionally, OpenAI is set to become a Reddit advertising partner.
Notably, OpenAI's co-founder and CEO, Sam Altman, holds a stake in Reddit. The new partnership, spearheaded by OpenAI's COO, Brad Lightcap, received approval from OpenAI's independent Board of Directors.
Under the terms of the agreement, OpenAI will gain access to Reddit's Data API, which supplies real-time, structured, and exclusive content from Reddit.
The collaboration is poised to benefit the user communities of both Reddit and OpenAI in multiple ways.
OpenAI's implementation will enhance Reddit content within ChatGPT and new products, fostering user engagement with Reddit communities. The access to Reddit’s Data API will enable OpenAI’s AI tools to better comprehend and highlight Reddit content, particularly on current topics.
Moreover, Reddit intends to introduce new AI-powered features for its users and moderators, leveraging OpenAI's AI models to realize its ambitious objectives.
Steve Huffman, Reddit's Co-Founder and CEO, stated, "Reddit has become one of the internet's largest open archives of authentic, relevant, and always up-to-date human conversations about anything and everything. Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they're looking for, and helps new audiences find community on Reddit."
Furthermore, Bloomberg recently disclosed that tech giant Apple Inc. is nearing the final stages of an agreement with OpenAI to integrate ChatGPT features into iOS 18.
As of the latest update, Reddit shares were up approximately 13.8%, trading at $64.17 in pre-market activity on the New York Stock Exchange.
