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Reddit Signs Data and Advertising Deal With OpenAI

Reddit Signs Data and Advertising Deal With OpenAI

In a major licensing deal for the artificial intelligence firm OpenAI, the organization says that it has inked a multifaceted deal with the web platform Reddit.

Reddit has said that licensing its data to help train generative AI models is one of its growth opportunities, and indeed the company says that “OpenAI will access Reddit’s Data API, which provides real-time, structured, and unique content from Reddit. This will enable OpenAI’s AI tools to better understand and showcase Reddit content, especially on recent topics.”

However, the deal will also see OpenAI commit to being a Reddit advertising partner, with Reddit also committing to bring “new AI-powered features to redditors and mods.”

The financial terms of the deal were not disclosed, though Reddit had previously disclosed a $203 million AI licensing deal, believed to be with Google to help train its Gemini LLM.

It’s also worth noting that Sam Altman, OpenAI’s co-founder and CEO, is among the largest shareholders in Reddit, with an 8.7 percent stake. OpenAI said in a disclosure that “Sam Altman is a shareholder in Reddit. This partnership was led by OpenAI’s COO and approved by its independent Board of Directors.”

“We are thrilled to partner with Reddit to enhance ChatGPT with uniquely timely and relevant information, and to explore the possibilities to enrich the Reddit experience with AI-powered features,” said OpenAI’s COO, Brad Lightcap, in a statement.

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“Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up to date human conversations about anything and everything,” added Reddit CEO Steve Huffman. “Including it in 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.”

OpenAI has been aggressively seeking sources of training data to cut licensing deals with. Earlier this month it announced a deal with IAC’s Dotdash Meredith, which owns People, Food & Wine and other publications.

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