Reddit, the social news, entertainment and forum platform, has announced a partnership with OpenAI, the developer of ChatGPT, to allow the use of social platform contents in training artificial intelligence models.
Reddit, ha debuted on the stock exchange in March , with the symbol “Rddt”. The company was valued at $6,4 billion with an initial public offering (IPO) set at $34 per share. News of the deal had a positive effect on the stock market, with Reddit shares rising 11% in after-hours trading.
Similar to a previous deal between Reddit and Google worth $60 million, this partnership with OpenAI will allow Reddit to offer AI-powered tools to its users and moderators.
The details of the collaboration
Reddit will allow ChatGPT to train on published content on its platform. In exchange, the social platform will offer new features based on artificial intelligence to users and moderators, leveraging OpenAI language models to develop innovative applications. This should allow for better discussion management and content moderation.
Additionally, OpenAI will become an advertising partner of Reddit, creating new monetization opportunities for both companies.
OpenAi: The goal is to minimize legal disputes
The deal between OpenAI and Reddit is part of a larger effort to mitigate legal risk related to the unauthorized use of copyrighted content online. OpenAI, along with companies like Microsoft and Google, is trying to avoid this as much as possible legal disputes through structured licensing agreements.
Artificial intelligence systems require the analysis of large volumes of text to improve their ability to emulate human language and to enhance their services. And this "training" often involves the use of data available on the internet, including online newspaper archives. OpenAI has already signed agreements with various journals, including the Financial Times andAssociated Press, to gain access to their content, similar to what was done with Reddit. But not everything always goes right: other newspapers and authors sued Sam Altman's company (and Microsoft) claiming that their materials have been used without authorization, violating copyright laws. These include the New York Times and authors such as George RR Martin and John Grisham.
Reddit shareholders, meanwhile, welcomed the news, seeing the deal as a stable source of revenue and a chance to diversify beyond traditional advertising. For Reddit, which functions primarily as an aggregator of news and information shared and commented on by users, this collaboration represents a significant step forward in its technological and market evolution.
