Shares of Reddit Inc. (NYSE: RDDT) fell nearly 9% on Wednesday in New York following reports that the company is considering ending Google’s access to its content for artificial intelligence training. The decline came after a Wall Street Journal report and amid negotiations over a data-licensing deal valued at about $60 million per year, according to market sources.
Shares of Reddit Inc. (NYSE: RDDT) closed down 8.32% at $170.38 on Wednesday, marking a sharp decline linked to reports that the company is reconsidering its data-sharing relationship with Google. The Wall Street Journal reported that Reddit has considered cutting off Google’s access to its content for training artificial intelligence models, triggering investor concern and a sell-off in the stock, according to multiple market commentary sources. DiarioBitcoin also noted that Reddit had internally analyzed ending Google’s access, directly connecting this news to the nearly 9% drop in shares.
The reported negotiations between Reddit and Google involve a data-licensing agreement valued at approximately $60 million per year, according to DiarioBitcoin.
This contract allows Google to license Reddit’s content for use in developing AI search tools and related products. Market analysts view the Google deal as a key component of Reddit’s broader monetization strategy, which includes similar AI data agreements signed in 2024 with both Google (Alphabet) and OpenAI. These AI contracts are estimated to be worth a combined $550 million, underscoring their significance to Reddit’s revenue outlook, according to market analysis cited by MarketBeat.
The current Google data-licensing agreement is believed to run for about three years, with expected expiration in early 2027, based on Reddit’s reported performance obligations detailed in its 10-Q filings. The OpenAI deal is set to expire roughly one month after the Google contract, indicating a clustered timeline for the renewal of Reddit’s major AI partnerships. Market commentary highlights 2026 as a critical year for renegotiating these contracts, with early discussions reportedly underway between Reddit and Google as of late 2025. Investors are closely watching whether Google’s access will be extended, modified, or terminated.
Investor concerns center on the potential business impact if Reddit does not renew the Google AI content deal. MarketBeat reported that some investors worry AI-generated search summaries by Google could reduce traffic to external sites like Reddit by keeping users on Google’s platform, thereby limiting click-through referrals. This reduction in search-driven traffic could negatively affect Reddit’s advertising revenue, a core part of its business model. The uncertainty around the Google AI data deal and its renewal status has heightened investor anxiety, especially with Reddit’s second-quarter earnings report scheduled for July 30, when the company is expected to provide updated guidance on traffic, monetization, and AI-related revenue streams.
Market analysts emphasize that the Google data-licensing deal’s material value—around $60 million annually—means any disruption would significantly affect Reddit’s near-term revenue and profitability expectations. The nearly 9% intraday drop in shares is cited as evidence that investors view the Google AI content deal as strategically critical. One analyst quoted in coverage described the prospect of not renewing the deal as a potential setback, indicating that continued collaboration with Google is seen as beneficial for both visibility and monetization. Tikr’s analysis of Reddit’s stock noted that it “swings” on news related to AI data contracts, reflecting ongoing market disagreement about the risks and benefits of these agreements.
The market reaction to the news appears driven by contract-related headlines rather than fundamental operational updates. Sources indicate that the current volatility reflects heightened uncertainty rather than a confirmed decision to end Google’s access. MarketBeat described Reddit as “negotiating a renewal” of its data-licensing deal with Google, confirming that formal discussions are underway though specific terms remain undisclosed. DiarioBitcoin’s reporting provides a concrete financial baseline for understanding the scale of the AI data deal, while other commentary portrays Reddit’s position as balancing monetization goals with platform control. The company is weighing how Google’s AI features affect traffic to Reddit and the broader ecosystem, leading to a reassessment of the level of access granted to external AI systems.
Public filings referenced in investor discussions, including 10-Q and reported performance obligations, suggest Reddit structured its AI data deals as multi-year contracts, reflecting a deliberate long-term data-licensing strategy. Tikr’s breakdown of Reddit’s AI agreements highlights the 2024 contracts with Google and OpenAI as major steps to monetize Reddit’s data corpus for AI applications. As negotiations continue, the outcome of the Google deal renewal is expected to play a significant role in Reddit’s financial performance and investor sentiment going forward.
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