Reddit shares fall on report of Google AI data deal doubts

Reddit shares fell about 9% on Wednesday after The Wall Street Journal reported that the company has discussed ending Google’s access to its content for artificial intelligence uses. The move would put pressure on a data licensing relationship that the Journal said is worth $60 million a year and is nearing expiration.

Reddit’s stock is down roughly 19% this year, according to CNBC. Google parent Alphabet’s Class A shares were slightly higher on Wednesday morning, according to market data cited by CNBC.

The Journal reported, citing people familiar with the matter, that Reddit is reassessing whether the Google agreement remains beneficial as the search company gives more prominence to AI-generated summaries in search results. Those summaries can answer user queries directly on Google’s results page, reducing the need for users to click through to outside websites.

Reddit and Google agreed in 2024 to let Google use Reddit posts and discussions to train artificial intelligence models, according to CNBC. Such data licensing agreements give AI companies access to large bodies of text that can help train or improve models, while the content owner receives a fee or other commercial benefits.

The economic question for publishers and online platforms is whether licensing revenue offsets any loss of referral traffic. Search traffic has long been a major distribution channel for digital media and online communities, and lower click-through rates can affect advertising revenue, audience growth and user acquisition.

The Journal reported that the traffic pressure is visible across large media sites. Between June 2025 and June 2026, Google traffic to Politico fell 23%, traffic to CNN declined about 25%, and traffic to Business Insider dropped more than 85%, according to figures reported by the Journal.

CNBC reported that it contacted both Reddit and Google for comment. The Journal said the two companies are discussing a possible renewal of the partnership as the current agreement approaches its end.

Reddit also has a data licensing arrangement with OpenAI that allows the ChatGPT maker to train models on Reddit content, according to CNBC. That business has become part of the investment case around Reddit as the company seeks to turn its user-generated archive into a recurring revenue stream.

In the first quarter, Reddit reported revenue growth of 69% from a year earlier, according to CNBC. The company posted earnings per share of $1.01, above analyst expectations of 58 cents, and revenue of $663 million, compared with estimates of $611 million.

Reddit Chief Executive Steve Huffman addressed the company’s AI relationships on its earnings call. “We have important partnerships with both Google and OpenAI,” Huffman told analysts, according to CNBC. “Those are very meaningful to us, and I think it’s mutual. We continue to value those.”

Reddit is scheduled to report second-quarter results on July 30, according to CNBC. Investors are likely to watch for further detail on data licensing revenue and the company’s relationship with large AI platforms.

This story draws on original reporting from CNBC.