Reddit’s $60 million annual agreement with Google for AI training data access may not be renewed, sparking investor concerns.
Reddit’s stock declined 9% after reports surfaced that the company is reconsidering its $60 million-a-year deal with Google for AI training data. The agreement, struck in 2024, allows Google to use Reddit’s content to train its AI models but is nearing expiration amid ongoing renewal talks.
The potential termination reflects broader tensions between publishers and Google, as AI-powered search responses reduce traffic to third-party sites. Other major publishers, including USA Today and Politico, have seen organic search traffic drop by up to 85% over the past year, raising concerns about long-term revenue impacts.
Google defended its AI tools, stating they drive substantial web traffic and support publisher growth. Reddit has not commented on the discussions, but the uncertainty weighed on investor sentiment.