Reddit shares surged in after-hours trading following the announcement of a partnership with OpenAI.
Due to the announcement of a cooperation with OpenAI, Reddit shares experienced a significant increase in after-hours trading on Thursday. By entering into this collaboration, OpenAI will be able to train its artificial intelligence models by utilizing the vast content database that Reddit maintains.
The agreement grants OpenAI access to Reddit’s Data API, facilitating the real-time integration of it’s content into their artificial intelligence tools.
It will respond by implementing OpenAI’s technology to offer artificial intelligence-powered features to its users and moderators.
As a result of the agreement, OpenAI will become more powerful because it will include the organized and unique content that Reddit provides in its models.
OpenAI will use these data to enhance the functionality of its popular ChatGPT and other artificial intelligence products. This will ensure that these products are always up to date with the most recent human talks on a wide range of topics.
Through the application programming interface (API) of the platform, Google’s artificial intelligence models are now able to access content from it. The agreement between Reddit and Google led to this collaboration.
The Chief Executive Officer of Reddit, Steve Huffman, expressed his excitement about this relationship and stated that, in addition to the training data, it will also utilize OpenAI’s cutting-edge models in order to develop new AI-powered features for its users and moderators.
“Reddit has become one of the largest open archives on the internet for real human conversations, which are always up-to-date. Including it in ChatGPT proves our belief in a connected internet and helps people to find more information they need as well as new communities on Reddit.”
Artificial intelligence will likely enhance the platform’s user experience by providing improved tools and features. As an additional benefit, OpenAI will become it’s advertising partner, which will allow it to incorporate its artificial intelligence technology into it’s advertising solutions.
Brad Lightcap, the Chief Operating Officer of OpenAI, spearheaded the transaction, and the OpenAI board of directors gave their blessing to it.
“We are glad to be Reddit’s partner to add a new feature to ChatGPT that is easily accessible and related at every moment, and we will also try with Reddit’s AI-powered features.”
According to Lightcap, Reddit stock prices skyrocketed, adding 11% to trading that took place after office hours immediately following the news. The price of AMC is currently on an upward trend, and this is occurring at a time when other meme stocks, such as GameStop, have also been on an upward trend in the earlier days.
Following its initial public offering in March, Reddit has seen its share price hit new heights, currently trading close to its all-time high of $65.11. As a result, it’s overarching aim to improve and develop its platform includes collaboration with OpenAI as one of its components.
Reddit made this decision due to user dissatisfaction with the API price modifications, which led to demonstrations and the banning of subreddits. Despite these challenges, the company remains committed to its strategic alliances aimed at increasing user participation and expanding its technological potential.
Over the past week, OpenAI introduced a new artificial intelligence model called GPT-4o. This model is both quicker and more efficient than its earlier incarnations.
This new model has improved the capability for text, video, and audio interactions, and OpenAI intends to provide a feature that allows ChatGPT users to engage in video chat.
Furthermore, the service expansion is evidence that the corporation intends to improve the quality of its artificial intelligence products and increase the number of people who use them.
Sam Altman, the Chief Executive Officer of OpenAI and a significant shareholder in Reddit, has significantly contributed to the development of the relationship between the two firms.
The collaboration is in line with OpenAI’s mission of incorporating artificial intelligence (AI) into everyday digital interactions in a more profound manner, thereby providing users with information that is more pertinent and current.