Reddit CEO Dismisses AI Chatbots as Traffic Drivers, Reveals Key Growth Factors in 2025

• Does Reddit Rely on AI Chatbots for Traffic? Not Yet, Says CEO
• Reddit’s Traffic Breakdown: Google vs. Direct Visits
• AI Partnerships: Training Data vs. Traffic
• Legal Fights Over Data Scraping
• Financial Highlights and Future Bets
• Q&A: Your Top Reddit Questions Answered

Reddit CEO Steve Huffman downplayed the role of AI chatbots in driving traffic to the platform during the Q3 2025 earnings call, emphasizing Google Search and direct visits as the primary sources. Despite partnerships with OpenAI and Google for AI training, Huffman noted these collaborations aren’t major traffic contributors yet. The company reported strong financials, including $585M in revenue (up 68% YoY), and highlighted legal battles with AI firms like Perplexity over data scraping. Reddit is also investing in AI-powered search and user onboarding to boost engagement.

Does Reddit Rely on AI Chatbots for Traffic? Not Yet, Says CEO

During Reddit’s Q3 2025 earnings call, CEO Steve Huffman made it clear: AI chatbots like ChatGPT aren’t significant traffic generators for the platform. "Chatbots don’t drive traffic today," Huffman stated, adding that Reddit’s growth hinges on Google Search (≈50% of traffic) and direct visits (≈50%). This comes despite Reddit’s $60M data licensing deal with Google and a similar partnership with OpenAI to train AI models. Huffman emphasized the value of these collaborations for product development but reiterated they’re not yet translating to measurable traffic spikes.

Reddit’s Traffic Breakdown: Google vs. Direct Visits

When asked about traffic distribution, Huffman confirmed analyst estimates were "roughly accurate": half from Google, half from users typing "reddit.com" directly. The platform’s search functionality, powered by its AI-driven "Answers" system, now handles 20% of queries—75M searches in Q3 alone. "We’re seeing traction with our AI tools, but they’re complementary to Core growth drivers," Huffman noted. Reddit’s international daily active users grew 315% YoY, with 190M Americans visiting weekly.

AI Partnerships: Training Data vs. Traffic

Reddit’s deals with OpenAI and Google focus on data licensing, not traffic generation. OpenAI gained access to Reddit’s "structured, real-time content" for ChatGPT, while Google uses posts to refine its search algorithms. Neither agreement includes traffic-sharing clauses. "These are learning partnerships," Huffman explained. "We’re exploring how AI can enhance Reddit’s value, but monetization isn’t the immediate goal." The company did, however, earn $60M from Google—a figure now scrutinized as investors question AI’s ROI.

Legal Fights Over Data Scraping

Reddit is embroiled in lawsuits against AI companies Anthropic and Perplexity for allegedly scraping data without permission. Court filings claim Perplexity "ignored cease-and-desist notices" to train its AI on Reddit content. "There’s zero licensing here," Reddit’s legal team asserted. This mirrors broader industry tensions—just last month, X sued an AI startup for similar violations. Huffman framed these battles as protective measures: "Our data has value, and we’ll defend its proper use."

Financial Highlights and Future Bets

Reddit posted $585M in Q3 revenue (up 68% YoY), with 444M weekly active users. Key investments include:

• AI Search: The Answers system now resolves 1 in 5 queries.
• Onboarding: New user flows aim to faster content matching ("We want relevancy from the first click," said Huffman).
• Mod Tools: AI features to help moderators manage communities.

Analysts remain divided on whether AI will eventually drive traffic. "Today’s training deals could become tomorrow’s referral pipelines," noted BTCC’s market strategist. For now, Reddit’s betting on its CORE strengths—though with $200M+ earmarked for AI R&D in 2026, the chatbot story may evolve.

Q&A: Your Top Reddit Questions Answered

How much of Reddit’s traffic comes from AI chatbots?

Negligible, per CEO Steve Huffman. Google and direct visits dominate.

What’s Reddit’s revenue growth rate?

68% year-over-year, reaching $585M in Q3 2025.

Why sue AI companies like Perplexity?

Reddit alleges unauthorized data scraping for AI training despite warnings.