Reddit is in talks with Google about a new AI agreement that would make the forums more central in AI Overviews and other Google AI products. This development could have significant implications for businesses that rely on search engine optimization and online visibility.
New negotiations on the valuation of AI content
According to Bloomberg reports, Reddit aims to move away from its current fixed compensation structure to a dynamic pricing model. The platform feels undervalued under the existing agreement worth $60 million from 2024, despite Reddit being one of the most cited sources in AI responses.
The discussions build on Reddit's initial data agreement with Google and broader licensing deals from January 2024 worth $203 million. Reddit executives argue that the current agreements underestimate the unique value of their discussions, which fuel everything from ChatGPT to Google's AI Overviews. Reddit is seeking variable compensation that increases as their content becomes more important for AI-generated responses. This model would pay Reddit more as their forums become more essential for AI tools.
Impact on Businesses and SEO Strategies
A deepened collaboration between Reddit and Google could significantly impact the visibility of brands and SEO professionals. More Reddit content in AI Overviews means that user-generated discussions may carry more weight in AI-driven responses and referral traffic. Companies active on Reddit can benefit from increased visibility, while others may need to reconsider how they shape their content strategy. The change could also affect how users find and consume information through Google's AI products.
Broader developments in AI licenses
These negotiations are taking place amid increasing tension surrounding AI training data. Various publishers, including The New York Times and Penske Media, have filed lawsuits against Google due to the negative impact of AI Overviews on their traffic. Reddit itself has also sued Anthropic for allegedly scraping forums without permission. This underscores how central Reddit's content has become for competing AI products.
For Reddit as a publicly traded company, AI partnerships may be one of the most important revenue streams after advertising. The outcome of these discussions could set the tone for how other user-driven platforms strike deals with AI companies.