OpenAI has entered into a partnership agreement with Reddit to utilize the social news site’s data for training AI models.
OpenAI made the announcement of this collaboration through a blog post on its website. The company stated, “Keeping the internet open is crucial, and part of that openness involves making Reddit content accessible to those driving human learning and exploring ways to establish community, belonging, and empowerment online. Reddit is a large and dynamic community that has been a significant space for online conversations for a long time.”
The United States-based AI firm mentioned that through this partnership, it will gain access to “real-time, structured, and unique content,” including Reddit posts and replies, which will enhance the understanding of its tools and models to represent this content. Reddit content will be integrated into ChatGPT, OpenAI’s primary AI model. Both companies will work towards introducing new “AI-powered features” for Reddit users and moderators, although the specifics have not been revealed yet.
Furthermore, OpenAI will also serve as a Reddit advertising partner.
OpenAI mentioned in the post, “Reddit will leverage OpenAI’s platform of AI models to realize its powerful vision.” The company added, “Using LLMs, ML, and AI enables Reddit to enhance the user experience for everyone.”
OpenAI has several licensing agreements with content providers similar to this partnership, from stock media libraries to emerging publishers. However, what sets this collaboration apart is the involvement of Sam Altman, OpenAI’s CEO, who holds an 8.7% stake in Reddit. Altman is the third-largest shareholder and has previously served on the company’s board of directors.
On his personal blog, Altman explained, “It has always bothered me that users contribute so much value to sites like Reddit but do not own any of it. Therefore, the Series B Investors are allocating 10% of our shares in this round to the people in the Reddit community, and I hope we increase community ownership over time.”
He further stated, “I am providing the company a proxy on my Series B shares. Reddit will have voting control of the class, thus significant protection against investors influencing it negatively by forcing an acquisition or impeding a future fundraise, among other things.”
To address any criticism, OpenAI clarified in its post that while Altman remains a Reddit shareholder, the partnership “was spearheaded by OpenAI’s COO [Brad Lightcap] and approved by its independent board of directors.”
An OpenAI spokesperson informed TechCrunch that although Altman sits on OpenAI’s board, he “excused himself from this decision.”
Data licensing agreements have become a key aspect of Reddit’s growth strategy as it transitions into a publicly traded company.
Following the announcement of the OpenAI partnership, Reddit’s stock increased by 11% in after-hours trading.
During an earnings call in March, Reddit CEO Steve Huffman mentioned, “The paradox I see is that, as more content on the internet is generated by machines, there is a growing premium on content produced by real people. We have almost two decades of genuine conversations.”
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