Reddit (RDDT) rose 11% in after-hours buying and selling following the social media agency putting a data-sharing cope with synthetic intelligence chatbot ChatGPT creator OpenAI.
Reddit said on Might 16 that it’ll present OpenAI with entry to its Information API offering real-time content material from posts made on the platform which it stated would “carry Reddit content material to ChatGPT and new merchandise.”
In trade, OpenAI will give Reddit customers and moderators a set of latest synthetic intelligence-powered options, geared toward strengthening consumer engagement.
Reddit additionally named the AI agency as its newest promoting associate.
Reddit fell 5.45% on Might 16 however the partnership announcement after the bell noticed it raly 11.05% to $62.61 in after-hours buying and selling, according to Google Finance.
Reddit signed a similar agreement with Google in February, reportedly value $60 million.
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Reddit has lengthy been targeted on discovering methods to strengthen group engagement and develop income streams exterior of providing promoting area.
The deal comes amid OpenAI and different AI corporations dealing with mounting authorized motion over their data-gathering strategies to coach their fashions, with lawsuits alleging the corporations illegally stole copyrighted content and private information.
On Might 16, the world’s largest music writer Sony despatched letters to over 700 corporations together with AI builders OpenAI, Microsoft and Google saying it has “cause to imagine” they might have made “unauthorized makes use of” of its music to coach their fashions, in response to multiple reports.
It beforehand had a blockchain-based rewards service, Group Factors, however the agency shut it down final October citing scalability considerations.
Reddit reported holding Bitcoin (BTC) and Ether (ETH) in its money reserves in February and even permits customers to pay for sure digital gadgets in Ether and Polygon (MATIC).
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