Chatbot fount of knowledge Reddit seeks better Google AI deal with higher pay, traffic

Reddit is seeking to renegotiate its AI data licensing deal with Google, pushing for both higher payments and user traffic referrals in exchange for its content. The discussions highlight a growing tension between content platforms and AI companies, as platforms struggle to maintain engagement while their data powers AI tools that potentially reduce direct site visits.

What you should know: Reddit executives are back at the negotiating table with Google, seeking to expand their relationship beyond the current $60 million annual data-sharing agreement.

• The platform wants Google to actively drive users to Reddit’s forums to create more content, rather than simply providing AI-generated answers sourced from Reddit without directing traffic back.
• Reddit is also pursuing a dynamic pricing model for future licensing deals, where compensation would be tied to how valuable or important the content is to AI-generated responses.
• Current executives believe the existing terms don’t adequately reflect Reddit’s data value to AI companies like Google and OpenAI.

Why Reddit has leverage: The platform offers uniquely valuable training data that stands out in an increasingly algorithm-dominated internet landscape.

• Reddit posts are created by real people speaking candidly, content is organized by theme, and ranked through human voting systems rather than algorithmic curation.
• Data shows Reddit is the top cited domain for AI tools like Perplexity and Google’s AI Overviews.
• Adding “reddit” to Google searches has become a widely known strategy for finding more useful, human-generated answers.

The central paradox: Reddit’s situation exemplifies the challenge facing many content platforms in the AI era.

• Platforms possess valuable data troves that tech companies need for AI model training, but those same AI models can reduce the traffic and engagement that originally made the platforms valuable.
• This creates a cycle where content providers risk being undermined by the very AI systems they help train with their data.

The big picture: Reddit’s push for better terms represents a broader shift in how content platforms are approaching AI licensing negotiations, moving beyond simple monetary compensation to seek arrangements that help preserve their core business models and user engagement.