Shares of social media company Reddit (RDDT) are up 11% on news of a partnership with artificial intelligence (A.I.) start-up company OpenAI.
The OpenAI partnership is expected to attract more users to Reddit’s social media platform with A.I.-enhancements and increased advertising.
Specifically, the new partnership allows Reddit to leverage OpenAI's technology, including its ChatGPT platform, to build tools and features that integrate Reddit's content in real-time.
OpenAI has also committed to becoming an advertising partner of Reddit, which runs online message boards, including the popular WallStreetBets site.
Reddit generates nearly 100% of its revenue from online advertising on its message boards.
The company held its initial public offering (IPO) at the end of March this year, at which time it disclosed that it has 80 million active users.
Prior to today (May 17), Reddit’s stock had risen 23% since its IPO on March 21 and was trading at $56.38 U.S. per share.
OpenAI is privately held. Its shares do not trade on a public exchange.
