By signing a major partnership with OpenAI, the AI company behind ChatGPT, Reddit ( RDDT ) took a big hit in its plans to sell its archive of unique posts to companies interested in training their large language models (LLMs).
On Friday, shares of the forum-based social media company jumped more than 14% as investors cheered the deal. The partnership will bring Reddit content to ChatGPT and OpenAI’s new products, with the chatbot drawing from Reddit’s data to deliver real-time content on the latest topics.
In turn, Reddit will get AI-powered features for redditors and moderators, the company said in an announcement Thursday. OpenAI will also become an advertising partner on Reddit, boosting the company’s main source of revenue.
“Reddit has become one of the web’s largest open archives of authentic, relevant, and always up-to-date human conversations about anything and everything. Adding it to ChatGPT reinforces our belief in a connected web, helping people find what they’re looking for, and helping new audiences discover community on Reddit.” ” said Steve Huffman, co-founder and CEO of Reddit.
Reddit’s deal comes as other major media companies are making deals with AI developers, trading their digital languages for guaranteed revenue.
