Reddit is reportedly considering restricting Google’s access to its user-generated content for artificial intelligence (AI) training as the two companies negotiate the renewal of their content licensing agreement. If the companies fail to reach a new deal, Reddit could limit Google’s AI access, highlighting growing concerns over how AI-powered search is changing the value of online content.
The two companies signed a content licensing agreement in February 2024, reportedly worth around $60 million a year, allowing Google to use Reddit’s content to train its AI models. As the agreement approaches renewal, Reddit is reviewing whether the current terms still reflect the value of its content.
The discussions come at a time when publishers are becoming increasingly concerned about Google’s AI Overviews, which generate summaries directly in search results. Many believe these AI-generated summaries reduce the number of visitors to their websites, leading to lower audience reach and advertising revenue.
Reddit’s extensive collection of user discussions has become a valuable source of data for AI companies. In addition to Google, the platform has also signed a content licensing agreement with OpenAI. At the same time, Reddit continues to rely on Google Search to drive traffic to its communities, making the outcome of the negotiations important for both companies.
The report also had an immediate impact on the market. Reddit’s shares fell more than 6% in premarket trading as investors reacted to uncertainty surrounding the future of the licensing agreement and its potential impact on the company’s business.
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