Reddit shares fall as Google AI data deal faces new doubts

Reddit shares fell 9% Wednesday after The Wall Street Journal reported that the company has discussed cutting off Google’s access to Reddit content for artificial intelligence use. For investors, the move puts a spotlight on one of Reddit’s newer revenue streams: licensing its data to AI companies that want real human posts to train and improve their models.

The companies reached an agreement in 2024 that lets Google use Reddit content to train AI systems, according to CNBC. The Journal reported, citing people familiar with the matter, that Reddit is now reassessing the value of that arrangement as Google puts more AI-generated answers in front of search users.

AI training means feeding large amounts of text, images or other data into a model so it can learn patterns and generate responses. Reddit’s forums are valuable in that market because they contain years of conversations across specialized communities, from product reviews to personal finance threads to niche technical discussions.

The tension is that Google’s AI answers can also reduce visits to the sites whose content helps power those systems. If a search user gets a summary directly on Google, they may have less reason to click through to Reddit or another publisher. Fewer visits can weaken advertising opportunities and user growth, two metrics investors track closely for online platforms.

Why the Google deal is under scrutiny

The Journal reported that Reddit’s agreement with Google is worth $60 million a year and is nearing its end. The companies are in talks about a possible renewal, according to the Journal.

Traffic pressure tied to Google’s AI summaries has shown up across major media sites, the Journal reported. Politico’s Google traffic declined 23%, CNN’s fell about 25%, and Business Insider’s dropped more than 85% from June 2025 to June 2026, according to the Journal.

CNBC reported that it contacted both Reddit and Google for comment.

Reddit’s stock is now down roughly 19% for the year, according to CNBC. The latest decline shows how quickly investors can reprice a company when a promising revenue line starts to look more complicated.

AI licensing has been part of Reddit’s growth story

Reddit also has a partnership with OpenAI that allows the ChatGPT maker to train AI models on Reddit content, according to CNBC. Those agreements are part of Reddit’s data licensing business, which CNBC reported helped support the company’s earnings beat in the prior quarter.

In the first quarter, Reddit reported revenue of $663 million, above analyst estimates of $611 million, according to CNBC. Earnings per share came in at $1.01, compared with expectations of 58 cents. Revenue rose 69% from the year-earlier period.

On that earnings call, Reddit CEO Steve Huffman told analysts: “We have important partnerships with both Google and OpenAI. 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. Investors will be watching for any update on data licensing, search traffic and whether AI partnerships remain a tailwind for the business.

This story draws on original reporting from CNBC.