New Partnership with OpenAI Signals Growing Value of Reddit’s Data

  • Reddit’s new deal with OpenAI highlights the demand for social media platform’s data, according to Deutsche Bank.
  • The partnership involves bringing Reddit content to OpenAI’s ChatGPT service and granting access to Reddit’s Data API.
  • OpenAI will also become a Reddit advertising partner and offer new AI-powered features to users and moderators.
  • Reddit has a longstanding relationship with Google, which is worth $60 million annually.
  • Deutsche Bank raised its price target for Reddit to $65 from $62 previously and maintains a buy rating.

Reddit’s partnership with OpenAI showcases the increasing demand for its data, following a similar deal with Google. The social media platform will bring content to OpenAI’s ChatGPT service and gain access to Reddit’s Data API, while OpenAI becomes an advertising partner offering AI-powered features. Deutsche Bank believes two more deals could be in the pipeline, potentially increasing annual Ebitda by 57%.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Reddit’s partnership with OpenAI, including details on the benefits of the deal for both parties and potential revenue implications. It also mentions related news such as Google’s previous deal with Reddit and Deutsche Bank’s price target increase. However, it lacks some specific numbers or figures to support its claims.
Noise Level: 6
Noise Justification: The article provides some relevant information about Reddit’s partnership with OpenAI and its potential impact on the company’s revenue. However, it contains repetitive information and lacks a comprehensive analysis of long-term trends or possibilities. It also does not offer much in terms of actionable insights or new knowledge for readers.
Public Companies: Reddit Inc. (RDDT), Alphabet Inc. (GOOGL), Alphabet Inc. (GOOG)
Key People: Benjamin Black (equity-research analyst at Deutsche Bank)

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Financial Relevance: Yes
Financial Markets Impacted: Reddit’s stock price and potential revenue from AI partnerships
Financial Rating Justification: The article discusses Reddit’s partnership with OpenAI, which could impact the company’s financial performance through increased revenue from AI-related deals and potentially affect its stock price. It also mentions a previous deal with Google and other possible partnerships with social listening and finance companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. It discusses a partnership between Reddit and OpenAI and its potential impact on the company’s revenue.

Reported publicly: www.marketwatch.com