OpenAI strikes deal to bring Reddit content to ChatGPT

May 16 (Reuters) – Reddit ( RDDT.N ) has partnered with OpenAI to feed its content to popular chatbot ChatGPT, the companies said on Thursday, expanding shares of the social media platform. Trade has been increased to 12 percent.
The deal highlights Reddit’s effort to diversify away from its advertising business, and follows its recent partnership with Alphabet ( GOOGL.O ), making its content available for training Google’s AI models. Opens a new tab to
ChatGPT and other OpenAI products will use Reddit’s application programming interface, and how Reddit distributes its content following the new partnership.

OpenAI will also become a Reddit company advertising partner, the company said.
Before Reddit’s March IPO, Reuters reported that Reddit inked its deal with Alphabet, which was worth about $60 million a year.
Investors see the sale of their data to train AI models as an important source of revenue outside of Reddit’s advertising business.
The social media company reported strong revenue growth and an improvement in profit in its first earnings since its market debut earlier this month, indicating that its Google deal and its advertising business will continue to grow. His pressure is paying off.
Reddit shares rose 10.5% to $62.31 after the bell. As of Wednesday’s close, the stock was up about 12 percent since the market opened in March.