Reddit Stock Surges 12% in 2025 After Strategic Partnership with OpenAI’s ChatGPT
Reddit shares jumped nearly 12% following the announcement of a groundbreaking partnership with OpenAI, integrating ChatGPT features and expanding AI-driven capabilities. Discover the key price levels to watch as Reddit charts new growth paths beyond traditional advertising.
Key Highlights to Watch
- Reddit's stock soared almost 12% in after-hours trading after revealing a new alliance with ChatGPT creator OpenAI.
- The collaboration grants OpenAI access to Reddit's API for AI training, while Reddit users and moderators gain exclusive OpenAI-powered features.
- This move marks Reddit’s strategic push to diversify revenue streams beyond its core advertising business.
- A volume-supported breakout past the previous high of $74.90 could signal further upside potential.
In a significant market move, Reddit (RDDT) shares surged in extended trading following its announcement of a partnership with OpenAI. This agreement enables OpenAI to utilize Reddit’s real-time and unique content via API access to enhance its artificial intelligence models.
In return, Reddit's community will benefit from advanced AI features powered by OpenAI, enriching user interaction and moderation tools. Moreover, OpenAI will join Reddit’s advertising partners, indicating deeper commercial integration.
Steve Huffman, Reddit CEO, emphasized the platform’s role as a vast archive of genuine and dynamic human conversations, stating that inclusion in ChatGPT aligns with their vision of a connected internet, helping users discover communities and relevant information more efficiently.
Earlier this year, Reddit also collaborated with Google, allowing AI models like Gemini access to its content for training purposes, showcasing its ongoing strategy to innovate revenue channels beyond advertising.
Notably, OpenAI's CEO Sam Altman has long-standing ties with Reddit, having led substantial funding rounds and serving on the board until 2022. His significant stake in Reddit, now valued around $750 million post-market surge, underscores his continued influence.
Watch the Critical $74.90 Price Threshold
After an initial post-IPO surge from $34, Reddit’s shares encountered selling pressure but began a strong V-shaped recovery from mid-April. With the OpenAI partnership announcement, momentum accelerated, making the $74.90 resistance level a crucial benchmark for investors.
A decisive breakout above this price, supported by trading volume, could unlock new highs and attract further buying interest as Reddit explores uncharted valuation territory.
Currently, Reddit shares stand at approximately $63.00 in after-hours trading, reflecting robust market enthusiasm.
Disclaimer: The information provided by ZAMONA is for educational and informational purposes only and does not constitute financial advice. Readers should conduct their own research and consult professionals before making investment decisions.
Author holds no positions in the mentioned securities as of the publication date.
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