This article first appeared on GuruFocus.
Reddit (NYSE:RDDT) shares fell about 6% on Wednesday after a report said the social media company is weighing whether to limit Google’s (NASDAQ:GOOG) access to its content for artificial intelligence training as the companies discuss renewing an existing licensing agreement.
Reddit and Google entered a content licensing agreement in 2024 valued at about $60 million annually, allowing Google to use Reddit posts to help train AI models. The report said Reddit executives are reviewing the future of that arrangement ahead of its renewal.
The report added that Reddit is among several publishers reassessing content-sharing agreements as AI-powered search tools reshape how users access online information. Media organizations including USA Today, Politico, The Economist, People and Reuters are also reviewing policies governing access to their content.
Google has said its AI search products continue directing users to publishers’ websites and provide tools that allow content owners to manage how their material is used. The report noted that Reddit has not made a final decision on restricting Google’s access, and discussions between the companies over a potential renewal remain ongoing.
