As reported by CNBC- After the social networking company announced a partnership with OpenAI, which would enable the ChatGPT creator to train its artificial intelligence models on Reddit material, Reddit shares rocketed up 11% in extended trading on Thursday.
Reddit’s Data application programming interface, or API, ” offers real-time, organised, and distinctive material from Reddit,” according to a release. As part of the agreement, OpenAI will have access to this content.
In return, Reddit will start providing moderators and users with specific AI features, facilitated by OpenAI, which will also join Reddit as an advertising partner. In February, Google and Reddit announced a similar collaboration that would let Google train its AI models—like Gemini—on Reddit material by giving the corporation access to the platform’s API.
According to CEO Steve Huffman’s statement on Thursday, “Reddit has grown into one of the internet’s largest open databases of genuine, prompt, and relevant human conversations about anything and everything.” “Adding it to ChatGPT supports our vision of a connected internet, makes it easier for users to discover additional facts or what they’re looking for, and connects new audiences with Reddit’s community.”
Sam Altman, the CEO of OpenAI, was a large stakeholder and former board member of Reddit. His stock is worth over $750 million following Thursday’s price explosion. The purchase was led by Brad Lightcap, Chief Operating Officer of OpenAI, and authorized by the board of the firm, according to the release.
Earlier this week, OpenAI launched a new AI model and desktop version of ChatGPT, along with an updated user interface, the company’s latest effort to expand use of its popular chatbot. The update brings GPT-4 to everyone, including OpenAI’s free users, Chief Technology Officer Mira Murati said Monday in a live streamed event.
Murati said the new model, GPT-4o, is “much faster,” with improved capabilities in text, video and audio. OpenAI said it eventually plans to allow users to video chat with ChatGPT.
The investment gives Reddit further momentum after a spike on Monday and Tuesday connected to a larger upswing in so-called meme stocks like GameStop. Reddit, which went public in March and, a few days after its IPO, achieved a record in the air, is now again trading close to its peak of $65.11.
