Reddit Could Limit Google’s Access to Its Content. What That Means for RDDT Stock.

Reddit (RDDT) shares moved lower after reports suggested the social media platform is considering restricting Alphabet's (GOOG) (GOOGL) access to its user-generated content, underscoring growing tensions between publishers and AI companies over the value of online data. The reported move comes as Reddit and Google negotiate the renewal of their artificial-intelligence (AI) licensing agreement, which was signed in 2024 and is reportedly worth about $60 million annually.

According to reports, Reddit believes Google’s AI-powered search features are reducing referral traffic by answering users’ questions directly, limiting the need to visit Reddit’s website. While no final decision has reportedly been made, Reddit is evaluating whether the existing licensing arrangement fairly reflects the value of its content in the AI era.