Reddit Slides 9% as $60 Million Google AI Content Deal Nears Renewal Test
Updated
Updated · CNBC · Jul 22
Reddit Slides 9% as $60 Million Google AI Content Deal Nears Renewal Test
3 articles · Updated · CNBC · Jul 22
Summary
Reddit shares fell 9% Wednesday after the Wall Street Journal reported the company has discussed cutting off Google's access to its content for AI training.
The talks come as Google's AI summaries have reduced traffic from search results to publishers' sites, prompting Reddit to reassess the value of the 2024 licensing agreement.
The Journal said the roughly $60 million-a-year deal is ending soon and the companies are negotiating a possible renewal; Reddit and Google did not immediately comment.
Reddit still relies on data licensing as a growth driver alongside a similar OpenAI partnership, after first-quarter revenue jumped 69% to $663 million and beat forecasts.
The report lands ahead of Reddit's July 30 earnings, with the stock now down about 19% this year despite last quarter's strong results.