Reuters is reporting that a new deal between the popular social media platform Reddit and OpenAI has spurred optimism about the former’s share value:
“Shares of Reddit (RDDT.N) rose 14% on Friday, following a partnership with artificial intelligence firm OpenAI that is expected to draw in more users for the social media platform with AI-enhanced experience and attract more advertising revenue.
“The stock was trading at $64.25 premarket, in touching distance of the highest closing price of $65.11 hit in late-March.
“The partnership, announced on Thursday, allows Reddit to leverage OpenAI’s technology to build tools and features, and OpenAI’s ChatGPT platform to integrate Reddit’s content in a ‘real-time, structured’ manner. OpenAI will also become an advertising partner for Reddit.
“The pact delivers on Reddit’s ‘IPO promise of seizing opportunities to make more of AI, whether that’s deploying the tech on its platform to improve the user experience or feeding its content into AI language models,’ said Russ Mould, investment director at AJ Bell.
“Reddit, which primarily generates revenue from advertising, is seeking to diversify its income streams. In a February filing, the company indicated its intent to explore new monetization channels, including offering creator tools and licensing its data to third parties.”
To read the entire article by Reuters, please click HERE.