Reddit & OpenAI Strike Deal To Enhance Chatbot Capabilities

Reddit, a social news aggregation and discussion website, has entered into a partnership with OpenAI, the research and development company dedicated to friendly artificial intelligence. This collaboration aims to bolster the capabilities of OpenAI's well-known chatbot, ChatGPT.

The agreement allows OpenAI to access and leverage Reddit's content through its application programming interface (API). This vast trove of user-generated content will serve as a valuable training ground for OpenAI's AI systems, enabling them to better understand and integrate Reddit-specific topics and discussions.

Additionally, this partnership signifies Reddit's continued efforts to diversify its revenue streams beyond traditional advertising. In March 2024, ahead of its initial public offering (IPO), Reddit established a similar agreement with Alphabet Inc., allowing Google to utilise Reddit's data for training its AI models.

In addition, the financial details of the current deal were not disclosed. However, earlier reports suggested Reddit's agreement with Alphabet was valued at approximately USD 60 million annually.

Further, the investors appear optimistic about this new revenue stream, with Reddit's share price experiencing a significant rise of 10.5 per cent following the revelation. This positive sentiment builds upon Reddit's strong financial performance since its IPO, with the company reporting impressive growth and profitability.