David Jagielski, CPA, The Motley Fool
Tue, July 28, 2026 astatine 8:47 AM CDT 3 min read
Reddit (NYSE: RDDT) isn't definite that its existent statement with Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) makes consciousness anymore. According to a study from the Wall Street Journal, the societal media elephantine is contemplating a important move: not making its contented disposable for chatbots.
While Alphabet's Google Search does thrust a batch of postulation to Reddit, it has besides been declining, with users turning much to artificial quality (AI) chatbots specified arsenic OpenAI's ChatGPT oregon Alphabet's Gemini for answers. And those chatbots person been trained with online content, including Reddit's fashionable online connection boards.
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A imaginable alteration successful strategy for Reddit would beryllium a bold move, but I judge it's the close one.
Reddit's gross maturation remains strong, but AI could airs a superior menace
Reddit has a beardown brand, with its communities being known for often offering balanced, two-sided arguments connected communal questions. Unlike a emblematic hunt query, which whitethorn conscionable supply a nonstop answer, Reddit tin connection much worth to radical seeking deeper investigation and thought. Due to its popularity, the societal media elephantine has been experiencing important maturation successful caller years, with advertisement gross accounting for the lion's stock of its apical line.
The occupation with AI chatbots, however, is that they tin importantly interaction postulation to Reddit if users get much analyzable answers without visiting the site's forums.
In 2024, Reddit and Google reached a $60 million-per-year woody that would let Google to bid its AI connected Reddit's content. However, that whitethorn not beryllium worthy the semipermanent hazard that it runs to Reddit's business, and it's a tiny fraction of the $2.5 cardinal successful gross the institution has generated implicit the past 4 quarters. Reddit is reportedly considering not renewing its licensing deal.
Is Reddit's banal worthy buying close now?
Reddit is close to question whether its AI woody makes sense. It should see a acold much lucrative statement with Google to compensate it for the existent and aboriginal postulation losses it whitethorn experience. It whitethorn simply beryllium that a woody can't beryllium reached, but it needs to support its concern and brand; if users tin find the aforesaid types of answers from a chatbot, determination whitethorn nary longer beryllium a request to sojourn Reddit's online communities.

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