OpenAI and Reddit are teaming up in a deal that will bring the social media platform's content to ChatGPT.
Shares of Reddit surged more than 10% before the market open on Friday.
Reddit said in a blog post that the agreement will give OpenAI access to its data application programming interface, which provides real-time, structured, and unique content from the platform.
Reddit users and moderators will also gain access to new artificial intelligence-powered features, and OpenAI will become a Reddit advertising partner.
"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 co-founder and Chief Executive Officer 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."
Reddit said the deal is consistent with other content arrangements and doesn't change its data API terms or developer terms, which say that content accessed through Reddit's data API can't be used for commercial purposes without the platform's approval.
Reddit said that API access is still free for non-commercial usage under its published threshold.
"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," Brad Lightcap, OpenAI chief operating officer, said in a statement.
Reddit made its debut on Wall Street in March, with investors pushing the value of the company close to $9 billion seconds after it began trading on the New York Stock Exchange.
Finding a new moneymaking opportunity was part of Reddit's pitch in the lead-up to its public offering. The company also signed an accord in January with Alphabet Inc.'s Google worth $60 million to help train large language models, the technology underpinning generative AI.
Huffman previously declined to discuss the specifics of the Google deal but said typical terms can govern how long a Reddit summary can show up in a Google search or whether a licensee has to display Reddit branding in AI-generated results. The San Francisco-based social network has signed licensing deals worth $203 million in total, with terms ranging from two to three years, and has been in talks to strike additional licensing agreements.
Reddit has a large audience that religiously visits the service to discuss a potpourri of subjects that range from silly memes to existential worries, as well as get recommendations from like-minded people.
OpenAI CEO Sam Altman accumulated a stake in Reddit as an early investor and it has made him one of the company's biggest shareholders.
OpenAI is increasingly forging partnerships with media companies to help train its generative artificial intelligence systems and show more real-time content within its chatbot. The ChatGPT maker also penned deals with Dotdash Meredith earlier this month and the Financial Times in April.
Backed by Microsoft Corp., the startup has emerged as a driving force in the development of AI.
Information for this article was contributed by Aisha Counts and Shirin Ghaffary of Bloomberg News (WPNS).