20 AI News Investors Should Not Miss

13. Reddit Inc (NYSE:RDDT)

Number of Hedge Fund Holders: 39

Reddit Inc (NYSE:RDDT) is an American social news aggregation, content rating, and forum social network. Artificial Intelligence is an important part of the company’s business, with the company enhancing its AI capabilities by acquiring Memorable AI. This was following a partnership announcement with OpenAI in May.

In an interview at the Wall Street Journal’s Tech Live 2024 event that happened October 21–23, 2024, Reddit CEO Steve Huffman asserted that the essence of artificial intelligence stems from human intelligence, which is in turn found on platforms such as Reddit. Platforms like Reddit are a birthplace for diverse and colloquial conversations that keep content constantly updated.

“The Reddit corpus is a significant part of the training of the major foundation models and that’s because there’s colloquial words about pretty much every topic constantly up to date.”

According to Huffman, there is a general lowering of the quality of content on the Internet since more and more of it is written by AI. This is where Reddit stands out as it’s the place where you can find human content that ends up being used to train AI.

Reddit is expected to report its third-quarter results on October 29. According to The Fly, several investment firms have raised the price target for Reddit Inc (NYSE:RDDT) including Roth MKM, B.Riley, and Jefferies. On October 23, Roth MKM raised its Reddit stock price target to $89 from $66, keeping a buy rating on the shares. The firm has highlighted Reddit’s existing contracts with Google and OpenAI for utilizing the platform data in training their models. Open AI is expected to contribute $40 million, while Google’s partnership generates $60 million in annual recurring revenue (ARR).