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OpenAI Partners with Reddit for Data Access and Advertising, Shares Surge 12%

May 16, 2024, 10:10 PM

OpenAI has announced a significant partnership with Reddit, granting the artificial intelligence startup access to Reddit's data API. This deal allows OpenAI to utilize Reddit's vast repository of posts and comments to train its language models, including ChatGPT. As a result of the partnership, Reddit shares surged by 12% in after-hours trading. The financial terms of the deal have not been disclosed, but it is noted that Google pays approximately $60 million per year for similar data access. The agreement includes an advertising commitment from OpenAI, and Sam Altman was recused from the deal. This collaboration is part of OpenAI's broader strategy to enhance its AI capabilities through partnerships with media and publishing companies. Additionally, Reddit is preparing for its March IPO.