Reddit is people! Which means its search might not be so damaged by AI slop
And the popular internet community website sees an opportunity to make inroads in the search business, even as web search is being swallowed by generative AI.
Company shares surged this week after Reddit reported $500 million in revenue for Q2 2025, a 78 percent increase. Net income reached $89 million, a welcome turnaround from a $10 million loss during Q2 2024.
CEO Steve Huffman said in a statement, "Reddit is built for this moment. In a world where connection is increasingly rare, our communities show how valuable human conversation and knowledge really are."
Reddit's fortunes in part can be attributed to demand from AI firms for the community site's historically human-authored posts, which they use for model training. The company's data licensing business, part of its "other revenue" line item, reached $35 million, up 24 percent year-over-year. Reddit last year struck content partnerships with OpenAI and Google. And in June this year, it sued Anthropic to halt uncompensated content scraping.
Huffman, during the company's conference call for investors, acknowledged the value of content licensing along with its limits. "What we've learned since we did those deals is that the Reddit Corpus is not essential, but appears to be growing in importance to some of the largest players on the Internet," he said.
