Reddit is considering terminating its $60 million-a-year data agreement with Google because AI search is impacting its traffic
Reddit (RDDT) is considering terminating its data licensing agreement with Google (GOOGL), which is worth approximately $60 million annually. The move aims to prevent Google’s AI search from directly using Reddit’s discussion content to generate answers, thereby reducing the need for users to visit the Reddit website. According to a July 22 report by The Wall Street Journal,the two companies are negotiating the renewal of their 2024 data licensing agreement, and Reddit has raised the possibility of halting Google’s access to its content for AI purposes. Although the agreement generates $60 million in annual revenue, Reddit believes that if AI-generated answers cite useful portions of its discussions, the value of referral traffic from Google searches will decrease.
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