Tech industry news releases and OpenAI announcements

OpenAI and Reddit Sign Data-Licensing Deal, Reddit Stock Rises 14%, Sam Altman Recused

May 17, 2024, 03:50 AM

OpenAI has signed a significant data-licensing deal with Reddit, granting the artificial intelligence company access to Reddit's Data API. This partnership will allow OpenAI to use Reddit's real-time, structured content to train its language models, including ChatGPT. In return, Reddit will receive an advertising commitment and access to OpenAI's technology. Sam Altman was recused from the deal. This deal follows similar agreements Reddit has made with other companies, such as Google's parent company Alphabet, which pays $60 million annually for data access. Following the announcement, Reddit's stock saw a substantial increase, rising by 14% in pre-market trading. The partnership is expected to enhance Reddit's user experience with AI-powered features and attract more advertising revenue.