OpenAI signs data and advertising deal with Reddit

OpenAI, an artificial intelligence firm, has announced a major licensing agreement with Reddit’s web platform.

OpenAI says it has signed a multifaceted licensing agreement with the social networking site Reddit. This is a major deal for the company.

Reddit could potentially expand by licensing its data to train generative AI models. The company says that “OpenAI will access Reddit’s Data API, which provides real-time, structured, and unique content from Reddit.” This will assist OpenAI’s AI tools in better understanding and showing off Reddit content, particularly new topics. As part of the deal, OpenAI will also agree to be Reddit’s advertising partner, and Reddit will promise to give Redditors and moderators “new AI-powered features.”

Reddit previously reported on a $203 million AI licensing deal, believed to be with Google for training its Gemini LLM. Google did not make the financial details of the deal public.

Another interesting fact is that OpenAI’s co-founder and CEO, Sam Altman, has an 8.7 percent stake in Reddit and is one of the site’s biggest shareholders. As part of its disclosure, OpenAI said, “Sam Altman owns shares in Reddit.” The company’s Board of Directors approved this deal, which OpenAI’s COO negotiated.

According to a statement from OpenAI’s COO, Brad Lightcap, the company is excited to work with Reddit to add timely and relevant information to ChatGPT and to look into how AI-powered features could improve the Reddit experience.

Reddit CEO Steve Huffman said, “Reddit has become one of the internet’s largest open archives of real, relevant, and always up-to-date human conversations about anything and everything.” We believe in a connected internet, and adding it to ChatGPT helps people find more of what they’re looking for, as well as introduces new people to the Reddit community.

OpenAI has been actively looking for places to get training data from in order to make licensing deals with them. Earlier this month, it made a deal with Dotdash Meredith, which is part of IAC and owns People, Food & Wine, and other magazines.