Reddit is in early negotiations to expand its data-sharing agreement with Google, aiming to deepen integration with Google's AI products and increase user contributions to Reddit forums.

Reddit is seeking a new payment model where compensation is linked to the value and frequency of its content's use in AI tools and search results, moving away from a fixed fee structure.

Reddit also has an AI licensing agreement with OpenAI, which has generated over $200 million in revenue for the company.

A brief outage on September 15, 2025, affected thousands of users across the U.S., but was quickly resolved, though such incidents can impact user trust.

Reddit’s stock saw a slight rise and was among the most trending on Stocktwits, with retail sentiment remaining bullish despite a 0.4% decrease.

Advertising revenue surged 84% to $465 million, driven by partnerships with major sports leagues like NBA, NFL, MLB, PGA Tour, and NASCAR, launched in July 2024.

Reddit's revenue for Q3 is projected between $535 million and $545 million, close to analyst estimates, with licensing deals typically lasting two to three years.

In Q2 2025, Reddit’s revenue increased 78% year-over-year to $500 million, fueled by ad growth and data licensing deals, including a $60 million annual deal with Google and a similar one with OpenAI.

Reddit's stock has surged more than 600% since its March 2024 IPO, rising 62% in 2025, reflecting strong investor confidence amid recent financial growth.

A deeper partnership with Google and other AI companies could lead to innovations like AI-driven forum recommendations and advanced moderation tools, but also raises regulatory concerns about data monopolies.

The broader industry trend involves AI companies securing licenses from content providers, with some facing legal disputes over unauthorized data use, exemplified by Google’s legal challenges from Chegg and Penske Media.

Reddit’s evolving licensing strategies and legal actions, including lawsuits against AI startups like Anthropic for data scraping, highlight ongoing tensions over data rights and fair use in AI training.