HODL.FM welcomes you to another Friday of straightfoward Web3 news and insights. True hodlers should never be the last ones to catch wind of news. 

Here is what we have for you:

  • OpenAI and Reddit Collaboration.
  • Bringing Reddit’s Content to a Large Language Model
  • What does this mean for the end user.
  • Following the announcement, Reddit, Inc. (RDDT) are up by 15%

OpenAI announced Thursday that it will now train its AI model using content from Reddit. Reddit, the internet’s living room,” stated this partnership would bring a cornucopia of, let’s call it ‘diverse,’ material to OpenAI’s large language model (LLM). 

This collaboration promises to improve user experience—because who doesn’t want an AI that has been schooled in the art of dank memes, relentless debates over the merits of Okra water, pineapple on pizza, and an inexplicable obsession with Chris Nolan’s Oppenheimer?

When it comes to striking conversations, Reddit has it all. And now, thanks to this new agreement, OpenAI’s LLM will be in the best interest of, well, someone out there.

Reddit announced the bromance with OpenAI will empower Redditors and mods with new AI-powered features. Meanwhile, OpenAI gets to play detective and decode the mysteries of Reddit content, especially the latest topics.

Source: Giphy

Naturally, this lovefest sent Reddit’s stock (RDDT) soaring like a cat meme gone viral, jumping over 14% in the after-hours trading frenzy. FYI, Reddit made its grand debut on the New York Stock Exchange on March 21.

Tucked on the footnotes of their latest blog post, OpenAI mentioned their CEO, Sam Altman, happens to be a Reddit shareholder. They also made sure to spotlight Brad Lightcap, OpenAI’s chief operating officer, as the Piccasso behind the grand masterstroke grand that forged the AI-Reddit alliance. Moreover, the board of directors approved the entire plan according to the blog announcement.

It’s almost like they want us to know everything is totally above board, with absolutely no conflict of interest—but two tech moguls making the world a better place, one algorithm at a time.

According to Reddit’s co-founder and CEO Steve Huffman, Reddit has ascended to become one of the internet’s largest living rooms for genuine, relevant, and updated human dialogue about, well, literally anything and everything.

Future Directions for Reddit and OpenAI Partnership

As such, Integrating it into ChatGPT champions the platform’s faith in a connected internet where people can ask for answers, hold debate, and even find community, emphasized Mr. Huffman.

Reddit said it would feed data into OpenAI’s products using its Data API. On the other hand, OpenAI will allow Reddit to innovate new AI features using its artificial intelligence technology and ultimately crown OpenAI as Reddit’s advertising partner.

Prior to the announcement on 16th May, Reddit stocks were down by 5% but rose by 11.05% in the hours after publishingng the news. As of this writing, Reddit, Inc. (RDDT) is up by 15% and currently trades at $65.

Reddit, Inc. (RDDT) Monthly Price Chart by TradingView

More Info on AI/Tech:

The announcements comes two months after reaching an agreement worth $60 million in February 2024. For the longest time, Reddit has always been at the forefront of innovating new methods for strengthening community engagement and coming up with new revenue models beyond advertising.

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