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OpenAI Partners with Reddit for Data Access, Reddit Shares Surge 12% After-Hours

May 16, 2024, 10:22 PM

OpenAI has announced a significant partnership with Reddit, allowing the artificial intelligence company to access Reddit's Data API for training its language models. The deal will enable OpenAI to incorporate real-time, structured, and unique Reddit content into its AI models, enhancing the capabilities of ChatGPT and other products. Reddit, in return, will receive an advertising commitment and access to OpenAI tech. Reddit shares surged by 12% after-hours following the announcement, reflecting investor optimism. The financial terms of the deal have not been disclosed, but it is noted that Google pays $60 million annually for a similar data-access contract with Reddit. Sam Altman was recused from the deal.