Reddit Sinks 9% on Reports It May Cut Off Google’s AI Data Access
Publishers say AI summaries are draining traffic, and some are weighing stronger blocks that could limit Google search visibility, officials said.
- On Wednesday, Reddit shares fell 9% following reports the company is considering blocking Google from using its platform data to train artificial intelligence models as their $60 million annual licensing agreement nears renewal.
- Declining referral traffic from Google's AI Overviews prompted the review, as publishers increasingly fear AI summaries cannibalize their audience; Reddit CEO Steve Huffman previously called the platform "fuel" for AI.
- Investors responded sharply to the potential fallout, with Reddit stock dropping 26% year-to-date, while the company and search giant negotiate renewal of their 2024 data-licensing deal worth $60 million annually.
- Google maintains its AI features send "billions of clicks to the web every week," while publishers weigh using technical tags like "nosnippet" to restrict unauthorized data scraping despite risking reduced search visibility.
- This conflict reflects a growing industry-wide struggle over AI usage of proprietary content; regulators in Britain's Competition and Markets Authority recently ordered Google to allow publishers to opt out of AI features without losing traditional search rankings.
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33 Articles
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Google Signs Multi-Year Deal to Train AI on Reddit Data via API
Google has struck a multi-year agreement with Reddit that will allow the search giant to train its artificial intelligence models on the platform’s vast archive of user-generated discussions. The deal, first reported by The Next Web, signals a significant shift in how major technology companies value community-driven content and how publishers might receive compensation for the traffic and data they generate. Under the arrangement, Google will p…
Reddit may cut Google off from its content over AI traffic
For twenty years, the deal between Google and the web was simple. Publishers let Google crawl their pages. Google sent readers back in return. That bargain is breaking. Reddit is the latest, and loudest, sign. Its shares fell about 9% on Wednesday after the Wall Street Journal reported that the company has discussed cutting off […] This story continues at The Next Web
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Reddit's 60 million dollar Google deal expires soon as Politico and Reuters both weigh crawler blocks. What breaks in search if premium publishers walk away? Continue reading this article on ppc.land. Sign up the PPC Land newsletter to get the latest marketing news.
Why Reddit Stock Is Dropping: $3.2 Billion Wiped Off Market Value as Shares Fall 9%
Reddit lost around $3.2 billion in market value after its shares fell about 9% on Wednesday, following reports that the social media platform is reconsidering whether Google should continue accessing Reddit's vast collection of discussions to train artificial intelligence models. The decline came after The Wall Street Journal reported that Reddit executives had internally discussed whether renewing the company's AI licensing agreement with Googl…
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