Reddit will Provide Access to Its Authentic Content
In addition to building on its recent collaboration with Alphabet to make its material available for Google’s AI model training, the deal also highlights Reddit’s efforts to expand its revenue streams beyond its advertising business.
As a result of the new collaboration, ChatGPT and other OpenAI products will make use of Reddit’s application programming interface, which is how Reddit shares content.
OpenAI will Enable AI Features on Reddit
Previously, before Reddit went public in March, Reuters revealed that Reddit had signed an agreement with Alphabet for an annual payment of roughly $60 million.
To generate income outside of Reddit’s advertising business, investors see selling its data to train AI models as a major opportunity.
The social media giant’s efforts to expand its ad business and close the Google merger appeared to be paying off, as it earlier this month announced robust revenue growth and rising profitability in its first earnings since going public.
After the bell, shares of Reddit increased 10.5%, closing at $62.31. The stock had increased by about 12% as of Wednesday’s close compared to its March market debut.
Reddit’s major shareholder and former board member, OpenAI CEO Sam Altman, has a stake worth approximately $750 million following Thursday’s market explosion.
Reddit Users are Voicing Their Opinions
Reddit knows that there is a privacy stigma attached to AI practices, so the company also highlighted in its announcement of the deal that it maintains that privacy is a right.
In addition, Reddit’s Data API Terms and Developer Terms—which stipulate that content obtained through Reddit’s Data API cannot be utilized for commercial purposes without Reddit’s consent—remain unchanged as a result of this cooperation, as the social media site made clear.
A Reddit user commented on a post mentioning the deal,
Under the published threshold set by the company, API access is still free for non-commercial use.
The social platform recently released its Public Content Policy, which it says is to enable communities, developers, and researchers to better understand how Reddit views user protections and access permissions to public content.
Reddit also said that the new partnership will make it possible for the platform to bring new AI capabilities to Redditors and moderators, and it will expand upon OpenAI’s artificial intelligence platform.
