OpenAI signs deal with Reddit to train ChatGPT on its content
The social news and media aggregation platform has previously signed a similar deal with Google.
Reddit has signed another deal with another AI company to allow its content to be used to train machine learning models. This time, Reddit has brokered a deal with OpenAI and its AI tool, ChatGPT.
Source: OpenAI
The deal between OpenAI and Reddit was reported on by Reuters on May 16, 2024. According to the report, Reddit has signed a deal that would allow OpenAI to train ChatGPT using the platform’s content. Part of this deal would see OpenAI become an advertising partner.
Earlier this year, Reddit signed a deal with Google, allowing the company to also use its content to train various machine learning models and power AI tools. The Reuters report noted that this deal was worth $60 million per year.
In March, Reddit priced its IPO at $34/share. This would mean a valuation of over $6 billion, which is considerably lower than its 2024 valuation which sat at $10 billion. However, the company did generate $804 million in revenue in 2023. These AI training deals may be Reddit’s attempt to expand its income streams outside of traditional advertisement.
The online forum has run into some hot water recently with its changes to its API policy. Third-party Reddit app Apollo shut down in June following the platform’s decision to paywall its API. Users revolted against the decision, so only time will tell how the content generators, the very backbone of the platform, handle all these AI training deals.
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replySam Chandler posted a new article, OpenAI signs deal with Reddit to train ChatGPT on its content
