OpenAI Secures Agreement To Train AI Using Reddit Data

OpenAI has reached a partnership agreement with Reddit to leverage the social news site’s data for training AI models.

OpenAI announced the news of this deal via a blog post on its site. The company said, “Keeping the internet open is crucial, and part of being open means Reddit content needs to be accessible to those fostering human learning and researching ways to build community, belonging, and empowerment online. Reddit is a uniquely large and vibrant community that has long been an important space for conversation on the internet.”

The U.S.-based AI company said that this collaboration will give it access to “real-time, structured, and unique content,” such as posts and replies from Reddit, giving its tools and models a better understanding to showcase that content. Reddit content will be integrated into ChatGPT, OpenAI’s flagship AI. Together, both companies will introduce new “AI-powered features” for Reddit users and moderators, although the specifics are yet to be disclosed.

Additionally, OpenAI will become a Reddit advertising partner.

In the post, OpenAI said, “Reddit will be building on OpenAI’s platform of AI models to bring its powerful vision to life.” The company added, “Using LLMs, ML, and AI allow Reddit to improve the user experience for everyone.”

OpenAI has many licensing agreements with content providers that are similar to this partnership. These agreements span from stock media libraries to emerging publishers. However, what distinguishes this collaboration apart is the involvement of Sam Altman, OpenAI’s CEO, who holds an 8.7% share in Reddit. He is the third-largest shareholder and has previously served on the company’s board of directors.

On his own blog site, Altman said, “It’s always bothered me that users create so much of the value of sites like Reddit but don’t own any of it. So, the Series B Investors are giving 10% of our shares in this round to the people in the Reddit community, and I hope we increase community ownership over time.”

He also added, “I’m giving the company a proxy on my Series B shares. Reddit will have voting control of the class and thus pretty significant protection against investors screwing it up by forcing an acquisition or blocking a future fundraise or whatever.”

In efforts to steer away from criticism, OpenAI says in its post that while Altman remains a Reddit shareholder, the partnership “was led by OpenAI’s COO [Brad Lightcap] and approved by its independent board of directors.”

An OpenAI spokesperson said to TechCrunch that although Altman is a member of OpenAI’s board, he “recused himself for this decision.”

Data licensing agreements have emerged as a central component of Reddit’s growth strategy as it paves its path as a publicly traded company.

After announcing the OpenAI agreement, Reddit stock rose by 11% in extended trading. 

During an earnings call in March, Reddit CEO Steve Huffman said, “The paradox I see is that, as more content on the internet is written by machines, there’s an increasing premium on content that comes from real people. And we have nearly two decades of authentic conversation.”