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Reddit Stock Pops On Partnership With OpenAI: The Details

Adam Eckert
May 16, 2024

Reddit Inc (NYSE:RDDT) shares are trading higher in Thursday’s after-hours session after the company announced a new partnership with OpenAI.

What To Know: In a new blog post, Reddit and OpenAI announced a partnership that will give OpenAI’s ChatGPT access to Reddit threads and enable Reddit users to use new AI-powered features. The two companies will also collaborate on advertising.

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.

The partnership will also see new AI-powered features come to the Reddit platform. Reddit said it will be building on OpenAI’s platform of AI models to bring its own “powerful vision to life.” OpenAI will also become a Reddit advertising partner.

“We are thrilled to partner with Reddit to enhance ChatGPT with uniquely timely and relevant information, and to explore the possibilities to enrich the Reddit experience with AI-powered features,” said Brad Nightcap, COO of OpenAI.

Reddit co-founder Steve Huffman added that giving ChatGPT access to Reddit data upholds the company’s belief in a connected internet. He expects the new partnership to help new audiences find communities on Reddit.

RDDT Price Action: Reddit shares were up 10.21% after-hours at $62.06 at the time of publication, according to Benzinga Pro.

See Also: Google Is 6 Months Behind ChatGPT-Parent OpenAI In Artificial Intelligence But ‘About 5 Years Ahead Of Everyone Else,’ Says Gene Munster

Photo: Shutterstock.

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