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Reddit OpenAI News: Entities Partner To Introduce AI-Powered Features

Reddit partners with OpenAI to boost AI features using its vast content, leading to an 11% surge in Reddit shares after the announcement.
Reddit OpenAI News: Entities Partner To Introduce AI-Powered Features

Highlights

  • Reddit partners with OpenAI to provide AI-powered features and access to its Data API, boosting shares by 11%.
  • OpenAI to use Reddit’s content for AI training, enhancing ChatGPT’s real-time information and user engagement.
  • New AI partnership allows Reddit to introduce advanced tools for users, and sees OpenAI becoming an advertising partner.

Reddit shares leaped in after-hours trading on Thursday after announcing a partnership with OpenAI. This agreement will let OpenAI to train its artificial intelligence models using Reddit’s huge database of content.

The agreement, as a result, gives OpenAI the right to access Reddit’s Data API, which in turn will help them integrate Reddit content into their AI tools in real-time. In response, Reddit is going to use OpenAI’s technology to provide AI-powered features for its users and moderators.

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OpenAI Gains Access to Reddit’s Data API

The collaboration will make OpenAI more powerful by including Reddit’s structured and distinctive content in its models. OpenAI will use this data to enhance the performance of its well-known ChatGPT and other AI products, thus keeping them up-to-date with the latest human conversations on a variety of topics.

This cooperation is a result of the same agreement that was made between Reddit and Google, where Google’s AI models can now access Reddit content through the platform’s API.

Steve Huffman, the CEO of Reddit, was delighted about this partnership and said that

“Reddit has become one of the largest open archives on the internet for real human conversations, which are always up-to-date. Including it in ChatGPT proves our belief in a connected internet and helps people to find more information they need as well as new communities on Reddit.”

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AI Features and Advertising Partnership

Apart from the training data, Reddit will also use OpenAI’s state-of-the-art models to develop new AI-powered features for its users and moderators. This will probably enhance the user experience on the platform by providing better tools and functionalities based on artificial intelligence.

Besides, OpenAI will also become Reddit’s advertising partner and thus integrate its AI technology into Reddit’s advertising solutions.

The deal was led by OpenAI’s COO, Brad Lightcap, and it was approved by OpenAI’s board. Lightcap said,

“We are glad to be Reddit’s partner to add a new feature to ChatGPT that is easily accessible and related at every moment, and we will also try with Reddit’s AI-powered features.”

Market Reaction and Historical Context

Reddit’s stock prices sky-rocketed, adding 11% in after-hours trading right after the announcement. The upswing in the price of AMC is happening at a time when other meme stocks, like GameStop, have also been rallying in earlier days. Reddit, which went public in March, has seen its share price reach new heights, trading near its record high of $65.11.

Collaboration with OpenAI, consequently, is one element of Reddit’s overall plan to improve and develop its platform. This decision comes after user dissatisfaction with the changes to Reddit’s API pricing, which caused protests and subreddit blackouts.

Although facing these difficulties, the company continues with its strategic partnerships, which are aimed at raising user involvement and broadening its technological potential.

OpenAI’s Expanding Reach

During the week, OpenAI launched a new AI model, GPT-4o that is faster and more efficient than its previous versions. This new model has increased the capabilities for text, video and audio communications and OpenAI plans to add a feature of video chat for ChatGPT users.

This enlargement of the services, moreover, is a proof that the company wants to make its AI products better and be used by more people.

OpenAI CEO Sam Altman, a major shareholder in Reddit with a stake valued at approximately $750 million, has played a significant role in fostering the relationship between the two companies. The partnership aligns with OpenAI’s vision of integrating AI more deeply into everyday digital interactions, providing users with more relevant and timely information.

Read Also: Ripple CLO Hails Senate Vote to Overturn SEC’s Anti-Crypto Rule

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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