Reddit Bets on Human Insight Over AI Summaries as Shares Plunge
Reddit's stock fell more than 20% after earnings as CEO Steve Huffman criticized Google's AI Overviews and signaled a possible end to Reddit's roughly $60 million licensing deal with Google, arguing that Reddit's value lies in deep discussions rather than automated summaries. He noted AI tools are disrupting search referrals and cited a Pew Research study linking AI Overviews to fewer site referrals (which Google disputes). Reddit also has a deal with OpenAI, and investors worry about the company's dependence on Google referrals as the open web navigates AI disruptions.