What's Going On With Reddit Shares Friday On Heels Of OpenAI Partnership?

Reddit, Inc. RDDT shares are trading higher on Friday.

After yesterday’s closing bell, the social news forum said that it partnered with OpenAI to give ChatGPT access to Reddit threads and enable the site’s users to use new AI-powered features. 

The two companies will also collaborate on advertising.

Check This Out: Reddit Stock Pops On Partnership With OpenAI – The Details

OpenAI CEO Sam Altman, a former Reddit board member and major shareholder, holds a stake valued at approximately $750 million after recent gains, CNBC reported. The deal with Reddit was led by OpenAI COO Brad Lightcap and approved by the company’s board.

Under the partnership, OpenAI will bring Reddit content to ChatGPT and other related products, which is expected to help users discover and engage with Reddit communities.

OpenAI will gain access to Reddit's Data API, which will enable OpenAI's tools to better understand and display Reddit content, especially on recent topics.

Shares of Reddit, which had their initial public offering in March, gained over 11% in the past five days, with a whopping jump of over 40% in the past month. Investors can gain exposure to the stock via BNY Mellon Innovators ETF BKIV.

In February, Google unveiled a partnership with Reddit, granting access to the platform’s API to train AI models like Gemini.

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

Price Action: RDDT shares are trading higher by 9.30% to $61.65 premarket at last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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