Reddit is pushing for an enhanced partnership with Google, aiming to secure more users and increased revenue in exchange for providing even greater access to its valuable data for AI training. This development, reported by Bloomberg, highlights ongoing tensions between content platforms and tech giants in the AI era, where data licensing deals must balance monetization with preserving site traffic and engagement.
Approximately 18 months ago, Reddit inked its initial data-sharing agreement with Google, valued at around $60 million annually. Now, the social media platform is returning to negotiations, seeking a more prominent position within Google’s AI infrastructure. According to unnamed executives cited by Bloomberg, Reddit wants Google to implement mechanisms that direct users—who often obtain answers derived from Reddit content via AI tools—back to the platform. The goal is to encourage these users to post new content, thereby generating fresh data to fuel AI models while boosting Reddit’s community activity.
In addition to user redirection, Reddit is advocating for higher compensation for its data. The company is exploring a dynamic pricing model for future licensing agreements, not only with Google but also with entities like OpenAI. Under this proposed system, payments would vary based on the content’s utility and relevance to the AI-generated responses, ensuring fairer valuation of Reddit’s contributions.
Executives argue that existing deal terms undervalue Reddit’s dataset, which stands out for its authenticity and structure in an online landscape often criticized for low-quality “slop” content. Reddit’s posts feature genuine, candid discussions from real users, organized thematically into forums, and ranked through a community-driven voting system rather than opaque algorithms. This human-curated quality makes it exceptionally appealing for AI developers seeking reliable training data.
Data underscores Reddit’s prominence in the AI domain: it is the most frequently cited source for tools like Perplexity and Google’s AI Overviews. A popular search strategy among users involves appending “reddit” to Google queries to yield more accurate and insightful results, further evidencing the platform’s influence.
This negotiation exemplifies a broader paradox in AI licensing: content providers like Reddit supply the essential data for training advanced models, yet those same models risk diverting traffic away from original sources. By demanding terms that include user retention strategies alongside financial gains, Reddit aims to sustain its ecosystem’s vitality amid the rise of AI-driven search and summarization tools.
The talks reflect a maturing market for AI data deals, where platforms are increasingly assertive about protecting their long-term viability. As AI continues to evolve, such arrangements could set precedents for how tech companies compensate and collaborate with content creators.
