Reddit (RDDT) rose 11% in after-hours trading after the social media company struck a data-sharing deal with OpenAI, creator of the artificial intelligence chatbot ChatGPT.
Reddit said on May 16 that it would provide OpenAI with access to its Data API that provides real-time content from posts made on the platform, which it said would “bring Reddit content to ChatGPT and new products.”
In return, OpenAI will give Reddit users and moderators a host of new AI-powered features, aimed at boosting user engagement.
Reddit has also appointed an artificial intelligence company as its newest advertising partner.
Reddit stock fell 5.45% on May 16, but the partnership announcement after the bell saw it rise 11.05% to $62.61 in after-hours trading, according to Google Finance.
Reddit signed a similar agreement with Google in February, worth $60 million.
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Reddit has long focused on finding ways to boost community engagement and develop revenue streams outside of providing advertising space.
The deal comes amid OpenAI and other AI companies facing increasing legal action over their data collection methods to train their models, with lawsuits alleging the companies illegally stole copyrighted content and private information.
On May 16, Sony, the world's largest music publisher, sent letters to more than 700 companies including AI developers OpenAI, Microsoft and Google, saying it had “reason to believe” they may have made “unauthorized uses” of its music to train their models, according to As reported by the British newspaper “Daily Mail”. Multiple reports.
It previously had a blockchain-based rewards service, Community Points, but the company shut it down last October due to scalability concerns.
Reddit reported holding Bitcoin (BTC) and Ethereum (ETH) in its cash reserves in February, and is also allowing users to pay for some virtual items in Ether and Polygon (MATIC).
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