The gates of Reddit are now open to ChatGPT, as Reddit and ChatGPT-maker OpenAI have entered into a new partnership that promises to bring more advertising dollars and AI tools to the popular social platform. The announcement of this partnership caused Reddit stock to rise by 13% on Friday, showing the market’s positive reaction to the news.
OpenAI will utilize real-time data from Reddit users to train ChatGPT and develop new product offerings. This partnership will provide fresh training sources for AI, which has been a challenge for the technology. In recent months, OpenAI has secured deals with publishers like the Financial Times and Axel Springer to access data for ChatGPT.
On the Reddit side, the company will leverage OpenAI’s platform to introduce new AI features to its community. With organic Reddit traffic growing significantly in recent months, this partnership comes at a crucial time for the platform. Additionally, OpenAI will advertise on Reddit, contributing to the platform’s revenue stream.
While the financial terms of the deal were not disclosed, it is worth noting that OpenAI’s CEO, Sam Altman, has a significant stake in Reddit, owning more shares than even Reddit’s CEO. This partnership marks a significant step for both companies and highlights the growing importance of AI in the tech industry.
Furthermore, OpenAI’s rivalry with Google was also highlighted this week, as the two companies competed in the AI space. OpenAI surprised the industry by announcing a new AI model just before Google’s annual conference, showcasing the intense competition between the two tech giants. OpenAI’s plans to develop a web search engine product further intensifies the rivalry with Google, setting the stage for an exciting battle in the AI landscape.