Reddit to Give OpenAI Access to Its Data in Licensing Deal — Update
By Sarah E. Needleman
Reddit says it signed a deal with OpenAI to give the artificial-intelligence startup access to its data, following similar arrangements it made with Google and public-relations software firm Cision.
San Francisco-based Reddit says the deal will bring its content to OpenAI's ChatGPT chatbot and new products and that OpenAI will become a Reddit advertising partner. Further, Reddit users and moderators will gain new AI-powered features.
Shares in Reddit rose 11% in after-hours trading following the company's announcement of the deal. Financial terms weren't disclosed.
Data licensing is a new line of business for the social-media company, which generates most of its revenue from advertising sales. Reddit, which was founded in 2005, isn't profitable. The company went public in March and recently said it has 82.7 million daily active users.
Write to Sarah E. Needleman at sarah.needleman@wsj.com
(END) Dow Jones Newswires
May 16, 2024 19:43 ET (23:43 GMT)
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