Reddit Partners With OpenAI, RDDT Stock Pops 10%
The partnership will give OpenAI's ChatGPT access to Reddit's data, while providing Reddit users with access to new AI-powered features.
Reddit (NYSE: RDDT) shares jumped 10% on Friday in response to its OpenAI partnership announcement.
After yesterday’s closing bell, the social media forum announced that it partnered with OpenAI to give ChatGPT access to Reddit threads and enable users to use new AI-powered features.
The two companies will also collaborate on advertising.
OpenAI CEO Sam Altman, a former Reddit board member and major shareholder, holds a stake valued at approximately $750 million after recent gains, CNBC reported. The deal with Reddit was led by OpenAI COO Brad Lightcap and approved by the company’s board.
Under the partnership, OpenAI will bring Reddit content to ChatGPT and other related products, which is expected to help users discover and engage with Reddit communities.
OpenAI will gain access to Reddit’s Data API, which will enable OpenAI’s tools to better understand and display Reddit content, especially on recent topics.
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Shares of Reddit, which had their initial public offering in March, gained over 11% in the past five days, with a whopping jump of over 40% in the past month. Investors can gain exposure to the stock via BNY Mellon Innovators ETF (NASDAQ: BKIV).
In February, Google unveiled a partnership with Reddit, granting access to the platform’s API to train AI models like Gemini.
Commenting on the announcement, Reddit CEO Steve Huffman said:
“Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up to date human conversations about anything and everything. Including it in ChatGPT upholds our belief in a connected internet, helps people find more or what they’re looking for, and helps new audiences find community on Reddit.”
Shares of Reddit closed Friday’s trading session at $62.04, up +10.04%. In after-hours trading, RDDT stock is up +0.19%. Since its IPO, RDDT stock is up +34.87%.
This article was originally published on Benzinga.com.
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