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OpenAI has struck a take care of Reddit to make use of the social media platform's content for its artificial intelligence chatbot, sending the corporate's shares up as much as 15 percent in after-hours trading.
Thursday's announcement is the most recent in a series of deals between the Microsoft-backed startup and media brands, as competition for high-quality, reliable data to power powerful recent AI models intensifies. At the identical time, OpenAI is fighting copyright lawsuits from publishers who’re reluctant to permit the ChatGPT manufacturer to make use of their content.
The agreement gives OpenAI access to content on Reddit's website and allows the social media platform to embed other AI tools.
Financial details weren’t disclosed, but an increase in Reddit's stock would represent a windfall for Sam Altman, the co-founder and chief executive of OpenAI, who has invested tens of hundreds of thousands of dollars within the social media group.
According to public filings, Altman, who said he had no equity stake in OpenAI, owned nearly 10 percent of Reddit's stock through various firms before its March listing. The 39-year-old, a serial entrepreneur and investor, didn’t lead the negotiations with Reddit, in accordance with OpenAI.
The deal can even be a boon for Reddit's monetization efforts, which have to this point focused totally on constructing its ad-based business model. At its pre-listing roadshow, Reddit told investors that it also hoped to make a profit by selling its data to 3rd parties so that they could train their AI. It already has deals with Google and Cision.
OpenAI has signed plenty of deals this yr with publishers including the Financial Times, the US Associated Press, Germany's Axel Springer, France's Le Monde and Spain's Prisa Media. These deals give the San Francisco-based startup access to material that may in turn be used to develop and run generative AI technology that may create text, images and code from human input.
“We are excited to work with Reddit to boost ChatGPT with uniquely timely and relevant information and explore opportunities to counterpoint the Reddit experience with AI-powered features,” said Brad Lightcap, Chief Operating Officer of OpenAI.
Adding Reddit to ChatGPT “solidifies our belief in a connected web, helping people find more or what they're on the lookout for, and helping recent audiences find community on Reddit,” said Steve Huffman, co-founder and CEO of Reddit.
While some media brands have partnered with OpenAI, others have resisted. The New York Times and other publishers have as an alternative sued OpenAI and Microsoft over the gathering of their articles. In December, the NYT filed a lawsuit in search of billions of dollars in damages from the 2 firms for “cashing in on the Times' massive copyright infringement, business exploitation and misappropriation of its mental property.”
OpenAI has claimed the lawsuit is “meritless.”
Last month, eight regional U.S. newspapers, including the New York Daily News and the Chicago Tribune, also sued the businesses for copyright infringement.
With the arrival of the AI ​​boom, social media platforms are increasingly on the lookout for ways to monetize their helpful data.
Meta's Llama 3 AI model, which powers the virtual assistant feature, is open source, meaning developers can use it to create products easily and free of charge. However, large cloud firms corresponding to Apple and Google are charged for training their models on the system. Under Elon Musk,
At Reddit, the choice to charge third parties for data has angered long-ruling users, who were embroiled in a standoff with the corporate in June after moderators answerable for greater than 8,000 forums blocked access to their content or restrict.
