The floor of the New York Stock Exchange is gearing up for social media platform Reddit's initial public offering in New York City on March 21, 2024.
Spencer Pratt | Getty Images
Reddit stock soared 11% in after-hours trading Thursday after the social media company announced a partnership with OpenAI that will allow the ChatGPT maker to train artificial intelligence models on Reddit content.
As part of the deal, OpenAI will gain access to Reddit's data application programming interface (API) to “serve structured, proprietary content from Reddit in real time,” according to the release.
In return, Reddit will begin offering certain AI capabilities to its users and moderators powered by OpenAI, and OpenAI will also become Reddit's advertising partner. Google announced a similar partnership with Reddit in February, giving the company access to the platform's API to train AI models such as Gemini on Reddit content.
“Reddit has become one of the internet's largest open archives of authentic, relevant, and always up-to-date human conversation about everything,” CEO Steve Huffman said in a release Thursday. “Including this in ChatGPT maintains our belief in a connected internet, helps people find what they're looking for and more, and helps new viewers discover the community on his Reddit.” It will help.”
OpenAI CEO Sam Altman is a former Reddit board member and majority shareholder, with his shares valued at about $750 million after Thursday's public offering. OpenAI Chief Operating Officer Brad Lightcap spearheaded the transaction, which was approved by the company's board of directors, according to the release.
Earlier this week, OpenAI announced a new AI model and desktop version of ChatGPT, along with an updated user interface. This is the company's latest effort to expand the use of its popular chatbot. The update brings his GPT-4 to all users, including OpenAI's free users, Chief Technology Officer Mira Murati said during his livestreamed event on Monday.
Murati said the new model, GPT-4o, is “much faster” and has improved text, video and audio capabilities. OpenAI said it plans to eventually allow users to video chat with ChatGPT.
For Reddit, the trade is the latest flashpoint following Monday and Tuesday's rally, which was accompanied by a broad rally in so-called meme stocks such as GameStop. Reddit went public in March and hit a record closing price just days after its initial public offering, but is now back to trading around its all-time high of $65.11.
clock: OpenAI co-founder and chief scientist leaves company
