Reddit Shares Jump

Reddit Shares Jump


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Welcome to CryptoGod-1's blog on all things crypto. In this post I will look at the recent partnership between OpenAI and Reddit.

 

 

OpenAI and Reddit

The stock of social media firm Reddit saw a 13.5% rise following the announcement of a data-sharing deal with OpenAI. Known for creating the artificial intelligence (AI) chatbot ChatGPT, the deal between the two giants of industry was announced on the 16th of May 2024. The deal will allow for OpenAI to access Reddit’s data application programming interface (API), providing real-time content from platform posts.

Reddit said this would “bring Reddit content to ChatGPT and new products.” The COO of Open AI, Brad Lightcap, noted that the venture will “explore the possibilities to enrich the Reddit experience with AI-powered features.” This was also mentioned as an announcement which noted that ChatGPT will be the newest advertising partner of Reddit.

After the announcement the share price of Reddit saw an initial 5.5% decline, but during pre-market trading the share price rose 13.78% to $64.15. This was according to Google Finance data, as per below:

Reddit’s 24-hour share price. Source: Google Finance

 

The social media giants have long been looking for new ways to strengthen their community engagement while also developing new revenue streams outside of traditional advertising space. OpenAI will allow Reddit users and moderators to access a suite of new AI-powered features aimed at strengthening user engagement.

OpenAI will have access to real-time, structured, and unique content from Reddit meaning their AI tools will be able to apply this data and showcase more relevant Reddit content for uses. This will be especially useful when showing recent topics according to Reddit CEO Steve Huffman:

 

“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.”

 

The benefit to the partnership with Reddit will allow OpenAI access to Reddit’s API. This means products such as ChatGPT will have more p-to-date and relevant information, a previous limitation. Huffman added:

 

“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.”

 

This integration highlights Reddit's desire to expand its growth, but will not limit the company or users privacy. The Public Content Policy focusing on user privacy and content protection, with the policy of complete transparency to “give communities, developers, and researchers a better sense of how Reddit thinks about access to public content and the protections that should exist for users.”

The rise of AI cryptocurrencies has seen an average growth of 257.2% during the first two months of 2024. This came with a rising interest among major jurisdictions. One of the main leaders in this area is the United States, which saw senators propose a $32 Billion Investment Plan to Boost AI development throughout the United States over the next 3 years. This will help the nation seize the opportunity to “harness the opportunities and address the risks” of the rapidly developing technology.

The European Union meanwhile has began efforts to regulate AI as they set a global precedent by unanimously the AI Act. This legislation will help the Union to govern AI. The Act brings a targeted regulatory approach to some of the most pressing issues and anxieties around AI today as it will traverse a crucial boundary, providing clarity and confidence.

 

 

Have a great day.

Peace. CryptoGod-1.

 

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cryptogod-1
cryptogod-1

Writer, designer, creator, and life enthusiast. I love to read and write and enjoy sharing my passion for crypto, sports, literature and everything and anything I can enjoy in life.


CryptoGod-1 : Crypto & Blockchain
CryptoGod-1 : Crypto & Blockchain

Enthusiast here looking to share my ideas, thoughts, analysis, and experience when it comes to all things crypto

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