Reddit experienced a significant boost in its stock price, surging by 13.5%, following a data-sharing agreement with OpenAI, the company behind the AI chatbot ChatGPT. The partnership, announced on May 16th, allows OpenAI to access Reddit’s data application programming interface (API), enabling real-time content from platform posts. This collaboration aims to enhance the Reddit experience by integrating AI-powered features. OpenAI COO Brad Lightcap expressed excitement about exploring the potential to enrich Reddit with AI technology.
Furthermore, the announcement highlighted ChatGPT’s new role as Reddit’s advertising partner. Although Reddit initially witnessed a 5.45% decline, it rebounded in pre-market trading, with a 13.78% increase to reach $64.15, as reported by Google Finance.
OpenAI’s involvement brings numerous benefits to Reddit. The social media platform has long sought ways to enhance community engagement and diversify revenue streams beyond advertising. OpenAI will provide Reddit users and moderators with a suite of AI-powered features designed to strengthen user engagement. By utilizing Reddit’s data API, OpenAI gains access to real-time, structured, and unique content from the platform. This data empowers AI tools to present more relevant Reddit content, particularly on recent topics. Reddit CEO Steve Huffman emphasized the advantages for OpenAI products, enabling them to access up-to-date and pertinent information, which was previously limited. He also assured users that privacy remains a priority, as Reddit’s Public Content Policy safeguards user privacy and content protection.
The adoption of AI has witnessed significant growth in recent years, with AI cryptocurrencies experiencing an average increase of 257.2% in the first two months of 2024. This rise in interest has prompted major jurisdictions, including the United States, to propose substantial investments in AI development. US senators introduced a $32 billion investment plan to boost AI development over the next three years, seizing the opportunity to harness the technology’s potential while addressing associated risks.
These advancements have paved the way for promising projects with practical applications. Efforts to regulate AI have also emerged, with the European Union unanimously passing The AI Act, a groundbreaking legislation aimed at governing AI. This act tackles pressing concerns and uncertainties surrounding AI, providing clarity and fostering confidence in its use.