Reddit Stock Price Jumps After OpenAI Data-Sharing Deal

cryptonews.com:

Social media firm Reddit’s stock rose 13.5% after a data-sharing deal with OpenAI, the creator of the artificial intelligence (AI) chatbot ChatGPT.

On May 16th, Reddit announced its partnership with OpenAI. This deal grants OpenAI access to Reddit’s data application programming interface (API), providing real-time content from platform posts.

Reddit said this would “bring Reddit content to ChatGPT and new products.” Open AI COO Brad Lightcap said the venture will “explore the possibilities to enrich the Reddit experience with AI-powered features.”

The announcement also mentioned ChatGPT as the newest advertising partner of Reddit.

Following the announcement, Reddit stock saw a 5.45% decline, but in the pre-market, the site gained 13.78% to $64.15, as per Google Finance data.

Reddit has long been focused on finding ways to strengthen community engagement and develop revenue streams outside of offering advertising space.

OpenAI will give Reddit users and moderators a suite of new AI-powered features aimed at strengthening user engagement.

Using Reddit’s data API provides OpenAI with real-time, structured, and unique content from Reddit. AI tools can then apply this data to showcase more relevant Reddit content, especially on recent topics. Reddit CEO Steve Huffman commented:

“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.”

This partnership benefits OpenAI products by allowing access to Reddit’s API. Products like ChatGPT will gain up-to-date and relevant information, a previous limitation. Huffman added:

“Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up-to-date human