Reddit (NYSE:RDDT) shares jumped as much as 14% in late-night trading after it announced a new partnership with ChatGPT creator OpenAI.
Content from the Reddit (NYSE:RDDT) platform is expected to be taken in by OpenAI’s ChatGPT system and other products, meanwhile, OpenAI will also become a Reddit (NYSE:RDDT) 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,” 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.”
In ‘afterhours’ dealing, Reddit stock moved as high as $64.52 and was last changing hands at $62.61, up $6.23 or 11.05%.
Reddit shares floated in New York back in March, raising $750 million at $34 per share in an IPO that gave it an initial $6.5 billion valuation.