Reddit is renegotiating its AI data deal with Google, aiming for a new partnership model that better reflects the value of its content and boosts user engagement. Initially, Reddit signed a deal with Google valued at around $60 million annually to allow Google to use Reddit posts for training AI models. Now, Reddit wants a dynamic pricing system where payments are tied to how often its data is used in AI-generated answers. Additionally, Reddit seeks ways to convert Google traffic into active users since many people find Reddit content via Google but don’t visit or participate on Reddit itself.
Reddit’s unique, high-quality user-generated content is a prized source for AI platforms because it consists of authentic discussions organized by topic and ranked by human votes rather than bots or algorithms. Data shows Reddit is the most cited domain for popular AI tools like Google AI Overviews and Perplexity. However, the lack of visitor conversion threatens Reddit’s community vitality since generating fresh posts is crucial for training future AI models.
The talks reflect a broader trend where content platforms seek fair compensation and sustainable partnerships with AI companies. Other publishers like The New York Times have sued AI firms for unauthorized data use. Reddit also filed suit against AI startup Anthropic alleging data scraping. The outcomes of ongoing negotiations are pending, but Reddit’s push underscores the increasing importance of equitable data licensing as AI reliance grows.
This evolving deal between Reddit and Google aims to ensure that Reddit fairly benefits from being a foundational AI data supplier while encouraging deeper user engagement to sustain its vibrant online communities. The partnership, if successful, could set a precedent for future AI-content platform agreements.