On Thursday, Reddit shares rose amid its collaboration with OpenAI to train ChatGPT on the Redditors’ content.
Despite its -5.33% decline to $56.45 in the closed session, the social media platform’s shares demonstrated their resilience in pre-market trading by surging 14.07% to $64.39 apiece.
According to the deal, OpenAI will access Reddit’s application programming interface (API) data and add new artificial intelligence (AI) tools for Redditors and moderators.
Simultaneously, the AI giant has been facing copyright lawsuits from publishers who are unwilling to allow the tech firm to use their posts.
Although the financial details were not revealed, reports show that a rise in Reddit’s stock would benefit OpenAI’s CEO, Sam Altman.
Meanwhile, the agreement came a few months following the firm’s partnership with Alphabet’s Google, which also acquired access to the social network’s data for its AI products.
Reddit, which went public earlier this 2024, astounded investors with its better-than-expected first-quarter earnings as it took advantage of its AI and advertising deals.
According to reports, Altman noted that he has no equity stake in OpenAI, which carried nearly 10.00% of the social media platform’s stock before its public listing in March through several entities.
Redditors Raise Concerns on OpenAI and Reddit Deal
Redditors have been raising concerns about how Reddit’s management operated the platform before. Still, users remain pessimistic about the firm’s deal with OpenAI.
In addition, over 7,000 subreddits faded out in 2023 after they expressed opposition to the social network’s sudden changes to its API pricing.
Recently, news emerged about a collaboration between OpenAI and the programming forum Stack Overflow, which led to some users’ suspensions after they attempted to delete their posts.
Meanwhile, according to Reddit’s CEO, Steve Huffman, the platform has become one of the web’s giant open archives of legitimate, relevant, and updated human conversations on various topics.
Additionally, including it in ChatGPT aligns with their commitment to a connected internet, helps individuals discover more of what they seek, and assists new users in finding a community on Reddit.
