Reddit has announced a strategic partnership with OpenAI, providing the AI company access to Reddit’s Data API. This collaboration aims to integrate Reddit’s content into ChatGPT and other upcoming OpenAI products, enhancing user engagement and content discovery.
OpenAI will utilize Reddit’s Data API, which offers real-time, structured, and unique content from the social news aggregator. This access is expected to improve OpenAI’s AI tools by enabling them to better understand and showcase Reddit content, particularly on recent topics. The partnership will also see OpenAI becoming Reddit’s advertising partner.
The announcement follows a series of significant events for both companies. OpenAI has recently launched its GPT-4o model and a new desktop application for Mac users. Concurrently, Reddit has reported its Q1 2024 earnings, marking its first report since becoming a public company. Reddit’s daily active users have reached 82.7 million, reflecting a 37% year-over-year growth, and its revenue has increased by 48% to $243 million.
“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”, CEO Steve Huffman said in Thursday’s release. “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.”
OpenAI CEO Sam Altman, a former board member and major shareholder in Reddit, with a stake valued at about $750 million after Thursday’s pop, also commented on the partnership. OpenAI Chief Operating Officer Brad Lightcap spearheaded the deal, which was approved by the company’s board, the release said.
Reddit stands to benefit from this collaboration by developing new AI-powered features for its users and moderators. These features will be built on OpenAI’s platform of AI models, aiming to bring a powerful vision to life. Reddit has assured that this partnership aligns with its existing content arrangements and does not alter its Data API Terms or Developer Terms. Content accessed through Reddit’s Data API will not be used for commercial purposes without Reddit’s approval, and API access remains free for non-commercial usage under the published threshold.
Reddit shares surged 11% in extended trading on Thursday following the announcement of the partnership with OpenAI. This collaboration will allow the ChatGPT maker to train its artificial intelligence models on Reddit content. The move comes after Google announced a similar partnership with Reddit in February, allowing its AI models, such as Gemini, to access Reddit content via the platform’s API.
For Reddit, the deal provides another spark following a rally on Monday and Tuesday tied to a broader surge in so-called meme stocks such as GameStop. Reddit, which went public in March and reached a record close a few days after its initial public offering, is back to trading near its high of $65.11.
Earlier this week, OpenAI launched its new multimodal AI model GPT-4o and a desktop version of ChatGPT, along with an updated user interface. The update brings GPT-4 to everyone, including OpenAI’s free users, Chief Technology Officer Mira Murati said Monday in a livestreamed event. Murati noted that the GPT-4o is “much faster,” with improved capabilities in text, video, and audio. OpenAI said it eventually plans to allow users to video chat with ChatGPT.
