Reddit in Advanced Talks with Alphabet for New AI Content Licensing Deal

Reddit (RDDT) is negotiating a fresh content licensing agreement with Alphabet (GOOGL), building on an existing $60 million data-licensing contract. The proposed deal WOULD expand Alphabet's access to Reddit's platform content for training its Gemini AI chatbot and enhancing search features.

The social media company has already secured similar agreements with OpenAI, generating over $200 million in revenue from AI-related content licensing. These deals typically span two to three years, reflecting the growing demand for quality training data among tech giants developing AI models.

Reddit anticipates Q3 revenue between $535 million to $545 million, slightly below analyst expectations of $545.9 million. The Alphabet negotiations remain in early stages, but signal Reddit's strategic pivot toward monetizing its vast user-generated content through AI partnerships.