The stock price of social media company Reddit went up by 13.5% after it was announced that it would be sharing data with OpenAI, the company that made the AI tool ChatGPT. Reddit announced on May 16 that the agreement gives OpenAI access to Reddit’s data application programming interface (API), which lets them get information from posts in real-time.
These two sites collaborated to share the news on social media, saying the goal was to “bring Reddit content to ChatGPT and new products.” As Brad Lightcap, COO of OpenAI, put it, the partnership will “explore the possibilities to enrich the Reddit experience with AI-powered features.” It was also stated that ChatGPT will be Reddit’s newest advertising partner.
Google Finance shows that after the news came out, Reddit’s shares dropped by 5.45% at first, then rose by 13.78% to $64.15 in pre-market trade.
Reddit Aims to Boost Engagement and Revenue with AI Integration
It has always been a goal for Reddit to make money without using ads and get more people to interact with the community. When you connect to OpenAI, new AI-powered features will be added to make it easy for users to connect. OpenAI can use Reddit’s data API to get organized material in real time. This means that AI tools will be able to show more timely and relevant Reddit material, especially on popular topics.
Reddit CEO Steve Huffman said that this relationship will allow OpenAI products like ChatGPT to get the most up-to-date information, which wasn’t possible before.
Reddit’s Public Content Policy prioritizes user privacy and content security, which Huffman used to reassure users that the integration would not invade their privacy. The policy’s goal is full transparency so that communities, developers, and scholars can easily determine how Reddit handles user safety and access to public content.
The AI business has grown a lot in the last few years. Most AI cryptocurrencies went up by 257.2% at the start of 2024. This shows that big countries are becoming more interested. The US has been at the forefront of this trend.
ChatGPT upholds our belief in a connected internet, helps people find more of what they’re looking for, and helps new audiences find community on Reddit.
Senators in the US came up with a $32 billion plan on May 15 to speed up the progress in AI over the next three years. “Harness the opportunities and address the risks” that come with this fast-changing technology is what the goal is. Many cool projects that can be used in real life have come from this work.
At the same time, governments have tried to keep AI’s consequences under control. The European Union set a standard for the rest of the world by going around The AI Act, a full set of laws to control AI. The Act answers some of people’s most important questions and concerns about AI. It gives everyone in this fast-paced field more clarity and trust.
The fact that Reddit works with OpenAI shows how AI is being added to increasingly popular sites. Such an example shows how AI might change how people use and handle digital material. Teams like this should help people use AI more, leading to new ideas and better experiences for many people.
