Reddit has formed a strategic partnership with ChatGPT maker OpenAI.

Under this deal, OpenAI will gain access to Reddit's repository of content through the platform's application programming interface (API). This move allows OpenAI to leverage Reddit's user-generated data to train and enhance its AI models, including ChatGPT.

The collaboration represents Reddit's ongoing efforts to diversify its revenue streams beyond traditional advertising. It follows the company's recent agreement with Alphabet, Google's parent company, which granted the tech giant access to Reddit's content for training its AI models in exchange for an estimated $60 million annually.

Investors view the monetisation of Reddit's data as a crucial revenue source complementing the platform's advertising business. This strategic shift comes as Reddit prepares for its highly anticipated initial public offering (IPO), scheduled for March.

The partnership with OpenAI also includes an advertising component, with OpenAI becoming an advertising partner on the Reddit platform. This mutually beneficial arrangement aligns with Reddit's push to bolster its advertising revenue and OpenAI's interest in promoting its AI products to a broader audience.

The news of the OpenAI deal sent Reddit's shares soaring by 12 per cent in extended trading, reflecting enthusiasm for the company's diversification efforts and potential to capitalise on the burgeoning AI industry.

OpenAI announced on Monday the upcoming release of a new AI model called GPT-4o, with capabilities for realistic voice conversation and interaction across text and images. The new audio features enable users to speak to ChatGPT and receive responses in real-time without delay. Users can also interrupt ChatGPT while it is speaking, allowing for more natural conversational flow that has been challenging for AI assistants.

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