HomeTechnologyReddit Stock Jumps on the Back of Open AI Partnership

Reddit Stock Jumps on the Back of Open AI Partnership

Social media platform Reddit announced earlier this week that it is partnering up with artificial intelligence start-up Open AI to improve the experience of its users. The announcement caught the attention of investors, and the company’s stock saw a significant jump of 15% at one point.

The partnership will see Open AI’s chatbot Chat GPT gaining access to Reddit’s platform to use its content to answer inquiries. On the other hand, Reddit will use Open AI’s technology to build tools and features while integrating new content into its website.

Reddit, which has around 260 million weekly active users, currently relies on advertising as the main source of revenue. Partnerships with Open AI will allow the company to improve its advertising business while exploring other ways to make money.

“It’s important for Reddit to take big steps forward with AI as it needs to show it is capable of growing the user base and its earnings to earn a reputation of being a business with legs,” Russ Mould, investment director at AJ Bell, said about the partnership.

Reddit made its stock market debut on the New York Stock Exchange on March 21. The company’s IPO price of $34 per share has since gained more than 60% in value.

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