Reddit shares jumped 13.5% after announcing a partnership with OpenAI, the creator of the popular AI chatbot ChatGPT. On May 16, Reddit revealed the deal, which grants OpenAI access to their API for real-time data from the platform.
This partnership aims to integrate Reddit’s content into OpenAI products like ChatGPT, enhancing user experience with new AI-based features. Reddit CEO Steve Huffman stated that this collaboration supports the idea of a connected internet, helping users discover more information and new communities on the platform.
Immediately after the announcement, Reddit shares dropped by 5.45%. However, in pre-market trading, they surged by 13.78%, reaching $64.15. This significant change in share price indicates investors’ strong approval of the potential partnership with OpenAI.
OpenAI, on its part, will leverage Reddit’s structured and unique data to train its models, improving the quality and relevance of its content. OpenAI’s Chief Operating Officer Brad Lightcap noted that the partnership with Reddit will unlock new possibilities for enriching user experiences through AI-powered features.
Additionally, ChatGPT will become a new advertising partner for Reddit, opening up additional revenue streams for the social platform.
