OpenAI's New Deal brings Reddit content to ChatGPT Reddit's stock increased 12% during extended trading on Thursday after the firms announced a partnership to deliver content from Reddit to the well-known chatbot ChatGPT.
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Reddit's stock increased 12% during extended trading on Thursday after the firms announced a partnership to deliver content from Reddit to the well-known chatbot ChatGPT. The agreement highlights Reddit's efforts to expand outside of the advertising industry and comes after the company recently partnered with Alphabet to make its material available for use in Google's AI model training.
With this new agreement, ChatGPT and other OpenAI products will make use of Reddit's application programming interface, which is how Reddit distributes its content. The business announced that OpenAI will also cooperate with Reddit for advertising.
Before Reddit went public in March, Reuters revealed that Reddit had signed an agreement with Alphabet for an annual payment of roughly $60 million. Beyond Reddit's advertising business, investors see selling its data to train AI models as a significant source of income.
The social network company's first earnings since going public earlier this month showed robust revenue growth and rising profitability, suggesting that its efforts to expand its ad business and close a partnership with Google were beginning to pay off. Following the bell, Reddit's shares increased 10.5% to $62.31. Since making its market debut in March, the stock has increased by around 12% as of Wednesday's close.
