Reddit Seeks Better AI Deal with Google, Pushing for More Money and User Retention in Data Licensing Talks

Reddit is seeking a more favorable deal with Google, aiming to secure greater financial compensation and increased user engagement in exchange for its valuable content, according to Bloomberg. The move highlights a growing tension between major AI companies and content platforms as both sides navigate the complex balance between monetization and sustainability. A year and a half after its initial data-sharing agreement with Google—reportedly worth $60 million annually—Reddit is now renegotiating, pushing for a deeper integration into Google’s AI ecosystem. The company wants Google to not only pay more but also help drive users back to Reddit’s forums. Currently, many users search for answers on Google, receive AI-generated summaries pulled from Reddit, and then leave without contributing or engaging further. Reddit’s goal is to reverse that trend by encouraging those same users to return and post, thereby replenishing the very content that fuels AI training. The platform is also exploring a dynamic pricing model for future data licensing deals with Google, OpenAI, and other AI firms. Under this system, the price for access to Reddit’s data would vary based on how impactful or useful specific content is to AI outputs. Executives argue that current compensation does not reflect the true value Reddit provides, especially given how central its content has become to AI systems. Reddit’s data stands out in the crowded digital landscape. Unlike much of the internet, its posts are created by real users, often in candid and detailed discussions. Content is organized by topic, curated through community voting, and ranked by human judgment rather than opaque algorithms. This high-quality, structured format makes it a goldmine for AI training. Evidence supports this claim: Reddit is the most frequently cited website in AI tools like Perplexity and Google’s AI Overviews. It’s also a well-known trick among users to add “reddit” to a Google search query to get more accurate and detailed results. The push for better terms reflects a deeper paradox in the AI economy: platforms that generate the data AI systems rely on often see their traffic and engagement decline as AI tools begin to replace the need to visit those sites. Reddit is in a unique position to demand better because its content is both highly valuable and difficult to replicate. Its success in this negotiation could set a precedent for how content creators are compensated and protected in the age of AI.