Reddit’s (NYSE:RDDT) stock saw a significant surge of 14% following the announcement of a partnership with OpenAI. Under this agreement, OpenAI gains access to Reddit’s vast pool of content to train its large language model. In return, Reddit users and moderators will receive access to AI tools provided by OpenAI, and OpenAI will become an advertising partner on the platform.
The partnership underscores the importance of content for the continual improvement of large language models, a crucial aspect in the realm of AI development. OpenAI has previously entered into similar content agreements with major companies like Google and Axel Springer, the parent company of Business Insider.
Interestingly, the connection between Reddit and OpenAI goes beyond this partnership, as OpenAI’s CEO, Sam Altman, is a former board member of Reddit and holds a significant stake in the company. Altman’s involvement adds a layer of familiarity and trust to the collaboration.
For Reddit, this partnership aligns with its vision of fostering a connected internet community and providing users with valuable tools and resources. CEO Steve Huffman emphasized Reddit’s position as a vast repository of authentic and diverse human conversations, making it an ideal source for training AI models like OpenAI’s ChatGPT.
This announcement comes on the heels of OpenAI’s unveiling of its latest large language model, GPT-4o, which promises enhanced speed and a more immersive virtual assistant experience. Together, these developments highlight the ongoing evolution of AI technology and its integration into various aspects of online platforms like Reddit.
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