OpenAI has inked a deal with Reddit to use its data for training AI models. This deal will provide OpenAI with access to real-time, structured, and unique content from Reddit, including posts and replies. This will allow OpenAI’s tools and models to better understand and showcase that content.
The Reddit content will be incorporated into ChatGPT, OpenAI’s popular conversational AI. The two companies will work together to bring new AI-powered features to both Reddit users and moderators. As part of the deal, OpenAI will also become a Reddit advertising partner.
Reddit is building on OpenAI’s platform of AI models to bring its powerful vision to life. The use of large language models (LLMs), machine learning (ML), and AI will improve the user experience for everyone on Reddit.
OpenAI has several similar licensing deals with content providers ranging from stock media libraries to news publishers. However, this deal with Reddit is unique as Sam Altman, OpenAI’s CEO, has an 8.7% stake in Reddit, making him the third-largest shareholder. He was once a member of the company’s board of directors. To avoid scrutiny, OpenAI has clarified that the partnership was led by OpenAI’s COO, Brad Lightcap, and approved by OpenAI’s independent board of directors.
Reddit has made data licensing agreements an increasingly central part of its growth strategy as it navigates the market as a public company. In its IPO prospectus, Reddit revealed that it has contractual agreements to license its data to customers including Google worth a combined over $200 million. And, in its first earnings report as a public company, Reddit reported a 450% year-over-year increase in non-ad revenue, attributable mainly to those agreements.
Read more: techcrunch.com