Reddit's gates are now open to ChatGPT.
Reddit and ChatGPT creator OpenAI entered a new partnership on Thursday that brings more advertising dollars and AI tools to Reddit in exchange for Reddit posts.
Reddit shares rose 13% on Friday after the announcement.
OpenAI will use real-time data from Reddit users to train ChatGPT and its new product offerings. Finding new AI training resources has been one of the technology's challenges; in recent months, OpenAI has signed agreements with publishers such as THE Financial Times AND Axel Springer to access the data lands for ChatGPT.
Connected: OpenAI can now access Financial Times articles to train AI
For Reddit's part, the company will use OpenAI's platform to bring new AI features to its community. Reddit organic traffic has grown from 160 million clicks in August 2023 to 480 million in February this year, according to Ahrefs data.
OpenAI will also advertise on Reddit, adding to the platform's revenue.
The two companies did not disclose the financial terms of the deal, but Reddit entered into an AI licensing agreement with Google in February for a reported $60 million annually.
The difference between the two deals is that OpenAI CEO Sam Altman owns more shares in Reddit than its own CEO. Altman is Reddit's third largest shareholder; he owns more the shares that Reddit CEO Steve Huffman (8.7% stake to Huffman's 3.3%).
Connected: Who is OpenAI CEO Sam Altman? Net Worth, Education 
OpenAI CEO Sam Altman. Photo: Dustin Chambers/Bloomberg via Getty Images
OpenAI disclosed the connection between Altman and Reddit in its post announcing the deal, writing that it was “led by OpenAI's COO and approved by an independent Board of Directors.”
Connected: Site traffic down? Here are the big AI changes Google made to its search engine
With Reddit's new deal, OpenAI is also moving into training territory already claimed by rival AI maker Google.
OpenAI caught Google by surprise this weekannouncing a new AI model a day before Google's annual I/O conference.
The rivalry between the two companies came into the open on Thursday at X. OpenAI CEO Sam Altman attracted attention about the “aesthetic difference” between the settings that OpenAI and Google chose to announce their new AI models and a Google engineering he answered“Interesting how all your launches match ours then.”
“I try not to think too much about the competitors”
interesting how all your launches are on time with ours then https://t.co/bSeqvTh7ss
— Zachary Nado (@zacharynado) May 16, 2024
OpenAI is RECITED making a web search engine product to further challenge Google.