- Reddit shares investors have been left ablaze after Reddit stocks rose by 11% in after-hours trading following its data-sharing partnership with Open AI
- Despite the legal hiccup on AI firms, Reddit seems focused on using AI to boost user engagement in the platform
Reddit stocks surged following the announcement of the trailblazing data-sharing partnership with Open AI. This strategic partnership leaves both parties at a profitable juncture. While Open AI will showcase and gain access to Reddit information for better understanding, Reddit will get a series of AI-powered features for better and larger user engagement.
Reddit, the gigantic social news website will provide Open AI with access to its data application programming interface (API) including all content created in real time on the platform. This collaboration means that Open AI will gain access to Reddit’s information and data improving Open AI’s models with varied information.
Reciprocally, Open AI will offer Reddit users and developers a variety of AI-driven features aimed at increasing user engagement. This change is expected to change the user engagement experience on the platform, meaning better content recommendations, custom experiences, and even AI-generated developer tools. This signifies a larger and stronger Reddit community.
Reddit and OpenAI today announced a partnership to benefit both the Reddit and OpenAI user communities in a number of ways. Learn more on our corporate blog. https://t.co/qah9TaRjVU
— Reddit (@Reddit) May 16, 2024
Additionally, The social news network has named Open AI as its number 1 advertising partner implying further future collaboration.
According to Google Finance, on May 15th this development left Reddit stocks surging up by 11% which had earlier declined by 5.54% during the day to surging by $62.61 in after-hours trading. This sudden uptick indicated investor confidence in the partnership.
The collaboration comes after the social news platform is actively seeking ways above traditional ways to increase user engagement and diversify monetary streams. A not-so-long development was observed earlier this year when Reddit signed a similar agreement with Google valued at $60 million.
Nonetheless, this huge collaboration falls in line with a lot of scrutiny against the OPEN-AI model’s data collection methods. Great tech companies like Microsoft, are clenching fists with legal challenges over claims of sanctioned use of copyrighted and private information to train their AI models.
Conspicuously, on the same day of the great relevance, Sony, the world’s largest publishing house sent letters to 700 firms including Open AI Microsoft and Google alleging they have adequate grounds to believe that the firms have been illegally using its music to train AI models.
Despite these shortcomings, the prominent social network is determined to leverage and explore the potential of not only Open AI but also edge-cutting technologies to benefit its users. Previously as Crypto News Flash reported, Reddit earlier experimented with a crypto-based reward system)(community points) which was later cut short last October due to scalability issues.
However, the social media platform continues to examine new ways such as integrating a medium of cryptocurrency payment through their platform. Earlier this year Reddit reportedly joined force switch Polygon. Additionally, Reddit revealed holding huge reserves of Bitcoin and Ether.
This huge milestone with Open AI signifies Reddit’s boldness in exploring new innovative ways and advanced technologies to improve its platform. As new AI models continue to evolve mark a huge stepping stone for social media platforms with such collaborations.
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