By signing a major partnership with OpenAI, the AI company behind ChatGPT, Reddit (RDDT) has scored a major victory in its plans to sell its unique archive of posts to companies eager for large troves of content to train large language models (LLMs).
On Friday, shares of the forum-based social media company rose more than 14%, as investors rejoiced over the deal. The partnership will bring Reddit content into new ChatGPT and OpenAI products, drawing on Reddit data to give the chatbot real-time content on trending topics.
Reddit, in turn, will gain AI-powered features for Redditors’ editors and moderators, the company said in an announcement on Thursday. OpenAI will also become an advertising partner on Reddit, boosting the company’s main revenue stream.
“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. Its inclusion in ChatGPT supports our belief in a connected internet, and helps people find… “More of what they’re looking for, and helps new audiences find community on Reddit.”
The Reddit deal comes as other major media companies strike deals with AI developers, trading their digital language corpora for guaranteed revenue.
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