Under the terms of the deal, OpenAI will use Reddit’s data to teach its AI models.
The company said in a blog post on its press relations website that the relationship with Reddit will give it access to “real-time, structured and unique content” from Reddit, such as posts and replies. This will help its tools and models “better understand and showcase” that content. OpenAI’s famous conversational AI, ChatGPT, will use content from Reddit. The two companies will also work together to give Reddit users and moderators new “AI-powered features.”
OpenAI will also work with Reddit to show ads.
āOpenAIās platform of AI models will be used by Reddit to bring its powerful vision to life,ā the company said in a blog post. “Reddit can make the experience better for everyone by using LLMs, ML, and AI.”
Similar licensing deals have been made by OpenAI with a wide range of material providers, from news publishers to stock media libraries. But this story has a unique twist because Sam Altman, CEO of OpenAI, owns 8.7% of Reddit and used to be on the company’s board of directors. This makes him the third-largest shareholder.
OpenAI tries to avoid scrutiny by saying in a news release that Altman is still a shareholder in Reddit but that the partnership “was led by OpenAI’s COO [Brad Lightcap]” and “approved by [OpenAI’s] independent board of directors.” I should note that Altman is on the board of OpenAI, but an OpenAI spokesperson says he didn’t have a say in this choice.
As Reddit grows as a public company, data licensing agreements have become a more important part of its growth plan.
As part of its IPO filing, Reddit said that it has contracts with customers, such as Google, worth more than $200 million to sell its data. And in its first earnings report as a public company, Reddit said that its non-ad income had grown 450% year over year, mostly because of these agreements.
After the news of the OpenAI deal came out, Reddit stock went up 11% in late trade.
“It’s strange to me that as more content on the internet is written by computers, content that comes from real people is becoming more valuable,” Reddit CEO Steve Huffman said during the company’s March results call. “And we’ve been having real conversations for almost twenty years.”
There are more than 1 billion posts and more than 16 billion comments on Reddit every day, and that number grows thanks to its hundreds of millions of active users. Reddit is a gold mine for generative AI companies, whose models learn from examples of content like text and images to make new content that is similar.
But users who are worried about how the company is using their info to make money might not like it.
Also Read: Redditās Planned Ipo Share Price Looks High Until You See How Much Money It Makes From Ai
It’s helpful to look at Stack Overflow, a question-and-answer site for software coders that just signed a deal with OpenAI to provide data for the company’s model training. Some users took down their most popular answers to community questions as a protest. But Stack Overflow brought back the removed posts and banned those users, saying they didn’t follow the site’s rules.
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