OpenAI strikes deal with Reddit to bring content to ChatGPT

Reddit has partnered with OpenAI to bring its content to popular chatbot ChatGPT, the companies said on Thursday, sending the social media platform’s shares up 12% in extended trade.

The deal underscores Reddit’s attempt to diversify beyond its advertising business, and follows its recent partnership with Alphabet to make its content available for training Google’s AI models.

ChatGPT and other OpenAI products will use Reddit’s application programming interface, the means by which Reddit distributes its content, following the new partnership.

OpenAI will also become a Reddit advertising partner, the company said.

Ahead of Reddit’s March IPO, Reuters reported that Reddit struck its deal with Alphabet, worth about $60 million per year.

Investors view selling its data to train AI models as a key source of revenue beyond Reddit’s advertising business.