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Reddit Inc. forged a partnership with OpenAI that will bring its content to the chatbot ChatGPT and other products, while also helping the social media company add new artificial intelligence features to its forums.
Shares of Reddit, which had their initial public offering in March, jumped as much as 15% in late trading following the announcement.
The agreement “will enable OpenAI’s AI tools to better understand and showcase Reddit content, especially on recent topics,” the companies said Thursday in a joint statement. The deal allows OpenAI to display Reddit’s content and train AI systems on its partner’s data.
Reddit will also offer its users new AI-based tools built on models created by OpenAI, which will place ads on its partner’s site. Financial terms of the deal weren’t disclosed.
Reddit content has long been a popular source of training data for making AI models—including those of OpenAI. Last week, Reddit released new policies governing the use of its data, part of an effort to increase revenue through licensing agreements with artificial intelligence developers and other companies.
“Our data is extremely valuable,” Chief Executive Officer Steve Huffman said at the Bloomberg Technology Summit earlier this month. “We’re seeing a ton of interest in it.”
Finding new moneymaking opportunity was part of Reddit’s pitch in the lead-up to its IPO. The company also signed an accord in January with Alphabet Inc.’s Google worth $60 million to help train large language models, the technology underpinning generative AI.
Huffman previously declined to discuss the specifics of the Google deal but said typical terms can govern how long a Reddit summary can show up in a Google search or whether a licensee has to display Reddit branding in AI-generated results. The San Francisco-based social network has signed licensing deals worth $203 million in total, with terms ranging from two to three years, and has been in talks to strike additional…
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