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Reddit shares fall 9% on report it may not renew Google AI content deal
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Shares of Reddit fell 9% on Wednesday after the Wall Street Journal reported that Reddit has discussed ending Google's access to its content for AI training. The two companies struck a deal in 2024 allowing Google to train AI models on Reddit data, but as Google's AI summaries reduce traffic to websites, Reddit is reconsidering the benefits. The $60 million-a-year deal is ending soon, and negotiations are ongoing. Similar traffic declines have hit other publishers: Politico down 23%, CNN down 25%, and Business Insider down over 85% between June 2025 and 2026. Reddit also has a partnership with OpenAI. Despite the news, Reddit's Q1 earnings beat expectations with revenue up 69% year-over-year. The company reports Q2 earnings on July 30.
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Cheng Xin | Getty Images
Shares of Reddit slid 9% on Wednesday after the Wall Street Journal reported the company has discussed shutting off Google's access to its content for artificial intelligence use.
Reddit stock is down roughly 19% year-to-date.
Key Developments
- Deal under review: The two companies struck a deal in 2024 to allow the search giant to train its AI models on Reddit's content. However, as Google's AI summaries reduced traffic to websites from the search results page, Reddit is reconsidering the benefits of the deal, according to the Journal, citing people familiar with the matter.
- Broader traffic decline: The search traffic trend is visible across other sites. Between June 2025 and 2026, Politico's Google traffic fell 23%, CNN's fell about 25%, and Business Insider's dropped more than 85%, the Journal reported.
- Deal expiration: According to the Journal, Reddit's $60 million-a-year deal with Google is ending soon, and the companies are in talks about potentially renewing the partnership.
Reddit's AI Partnerships
Reddit has also had a similar partnership with OpenAI that allows the ChatGPT maker to train its AI models on its content. This is part of Reddit's data licensing business, which helped fuel an earnings beat last quarter.
During the first quarter, the company blew past analysts' expectations:
- Revenue jumped 69% from a year earlier
- Earnings per share: $1.01 versus 58 cents expected
- Revenue: $663 million versus estimates of $611 million
"We have important partnerships with both Google and OpenAI," Reddit CEO Huffman told analysts on the earnings call. "Those are very meaningful to us, and I think it's mutual. We continue to value those."
Upcoming Earnings
The company is set to report its second-quarter earnings on July 30.
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Reddit stock drops 9% amid talks to end Google AI data deal