Reddit stock surges on OpenAI tie-up

Reddit (NYSE:RDDT) shares traded significantly higher following Thursday’s close, up 14% in afterhours dealing, on the news that it had partnered with ChatGPT creator OpenAI.

It is expected that Reddit content would be brought into OpenAI’s ChatGPT and other products, meanwhile, OpenAI will also become a Reddit advertising partner.

OpenAI will access Reddit’s data API to obtain real-time, structured, and unique content from the social media platform.

“Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up to date human conversations about anything and everything,” Reddit chief executive Steve Huffman said in a statement.

“Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they’re looking for, and helps new audiences find community on Reddit.”

OpenAI chief operating officer Brad Lightcap, meanwhile, added: “We are thrilled to partner with Reddit to enhance ChatGPT with uniquely timely and relevant information, and to explore the possibilities to enrich the Reddit experience with AI-powered features.”.

In New York, where Reddit share floated in March – raising $750 million at $34 per share, for a $6.5 billion valuation – the stock tonight was last trading at $61.70, up 9.44% in ‘afterhours’.