The companies revealed that OpenAI and Reddit have partnered to provide material to the well-known chatbot ChatGPT; the social networking platform’s stock increased 12% during extended trading as a result of this announcement.
The firms announced on Thursday that Reddit (RDDT.N) has teamed with OpenAI to deliver its content to the popular chatbot ChatGPT. This news caused the social media platform’s shares to rise 12% in extended trading.
The agreement, which comes after Reddit’s recent cooperation with Alphabet (GOOGL.O), highlights the platform’s efforts to expand beyond its advertising business and creates a new tab where content may be made available for Google’s AI models to be trained.
With this new agreement, ChatGPT and other OpenAI products will leverage Reddit’s application programming interface, which is how Reddit distributes its content.
The business announced that OpenAI will also cooperate with Reddit for advertising.
According to a source, Reddit and Alphabet reached an agreement worth roughly $60 million annually prior to Reddit’s March initial public offering (IPO).
Outside of Reddit’s advertising business, investors see selling its data to train AI models as a significant source of income.
The social network company’s first earnings since going public earlier this month showed robust revenue growth and rising profitability, suggesting that its efforts to expand its ad business and close a partnership with Google were beginning to pay off.
After the bell, Reddit’s stock increased 10.5% to $62.31. Since making its market debut in March, the stock has increased by around 12% as of Wednesday’s close.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
About us:
CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.
CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.
