Reddit shares soar after OpenAI ChatGPT deal

Reddit shares soar after OpenAI ChatGPT deal

Shares in Reddit have jumped more than 10% after the firm said it had reached a partnership deal with artificial intelligence (AI) startup OpenAI.

Under the deal, the company behind chatbot ChatGPT will gain access to Reddit content, while it will also bring AI-powered features to the social media platform.

The announcement highlights Reddit’s efforts to expand its sources of revenue from advertising.

The agreement also comes as a growing number of copyright owners mount legal challenges over the use of their material by AI firms.

On Thursday Sony – which is the world’s biggest music publisher – sent a letter to Google, Microsoft and OpenAI demanding to know whether they have used its songs to develop AI systems.

The BBC has contacted Google, Microsoft and OpenAI for comment.

In recent months OpenAI has also agreed to a number of publishers, including the Associated Press and the Financial Times.

Meanwhile, Google announced a partnership in February that would allow the tech giant to access Reddit data to train its AI models.

Both in the European Union and the US, there are questions as to whether it is copyright infringement to train AI tools on such content, or whether it falls within the fair use and “temporary copying” exceptions.

This issue is being tested in the courts in the US, in several legal cases separately representing people such as Game of Thrones author George RR Martin, comedian Sarah Silverman and the New York Times.

This week, OpenAI introduced the latest version of the technology that supports ChatGPT.

The firm said GPT-4o will be rolled out to all ChatGPT users, including non-customers.

It is faster than previous models and has been programmed to sound conversational in its response to prompts.

The new version can read and discuss images, translate language and identify emotions from visual expressions. There is also a memory so it can remember previous prompts.

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