Reddit’s financial results have taken a dive as the company continues its transition into the AI space. “We believe that great companies are built in the public markets, and we’re proud to have made the transition this quarter,” co-founder and CEO Steve Huffman told analysts during the company’s earnings call.
Huffman was referring to the company’s initial public offering along with its advancements in implementing AI and machine learning onto its platform. Reddit has entered an agreement with OpenAI to bring its content onto ChatGPT. Furthermore, Reddit is entering the sporting world, bringing its content to the NBA, NFL, NASCAR, and MLB after entering agreements with these major leagues.
OpenAI will be integrating Reddit content into ChatGPT as well as other new products to provide users with access to Reddit’s Data Application Programming Interface (API), which provides real-time, quality content from Reddit. This will also enable these users to engage with Reddit communities.
The company posted a quarterly loss of $8.19 per share while reporting a total revenue of $243 million. The company recorded 82.7 million active users for the first quarter, far exceeding the 76.6 million users as expected by StreetAccount.