Reddit Drops 8% as $60 Million Google AI Data Deal Faces Renewal Risk
Updated
Updated · CNBC · Jul 22
Reddit Drops 8% as $60 Million Google AI Data Deal Faces Renewal Risk
3 articles · Updated · CNBC · Jul 22
Summary
Reddit shares fell 8% after the Wall Street Journal reported the company has discussed cutting off Google’s access to Reddit content for AI training as their deal nears expiry.
The $60 million-a-year agreement, signed in 2024, is being reassessed because Google’s AI summaries have reduced traffic from search results, weakening the partnership’s value for Reddit.
Reddit said it is approaching the talks by focusing on what best recognizes the value of its data, while Google said its AI features help publishers grow audiences and send traffic across the web.
Traffic pressure is broader across publishers: the Journal said Politico’s Google traffic fell 23%, CNN’s about 25%, and Business Insider’s more than 85% between June 2025 and 2026.
The negotiations come as Reddit expands data licensing with partners including OpenAI, a business that helped drive a 69% first-quarter revenue jump ahead of its July 30 earnings report.