Reddit May Cut Google Off from Its Content Over AI Traffic
Reddit’s stock tumbled 9% after a report that it may cut off Google’s access to its content for AI. The reason is simple: Google’s AI Overviews answer users on the results page, so fewer of them click through. Reddit, Politico, Reuters, and others are now asking whether the search deal is still worth it.
Key Takeaways
- July 23, 2026: For twenty years, a simple deal existed between Google and publishers: let Google crawl your pages, and you’ll get readers in return. This bargain is breaking.
- Reddit’s Shares Drop: Reddit shares fell about 9% on Wednesday after the Wall Street Journal reported the company has discussed cutting off Google’s access to its content for AI.
- Google-Reddit Deal: The two signed a deal in 2024 that lets Google train its models on Reddit posts, worth a reported $60 million a year. This deal is nearing its end.
- Traffic Issue: Reddit executives want the next deal priced by usage, not a flat fee, due to fewer clicks meaning less money from ads.
A Wider Trend
Reddit is not alone in considering this step. USA Today, Reuters, Politico, The Economist, and People Inc are all weighing how, or whether, to continue working with Google. The numbers show significant drops in referral traffic:
- Politico: 23% drop between June 2025 and June 2026.
- CNN: Approximately 25% drop.
- Business Insider: Over 85% drop.
Some publishers are taking a stand, as USA Today’s CEO Mike Reed told Digiday, “It’s time to take a stand and say enough is enough.” Independent research suggests click-through rates fall by a third to a half when an AI Overview appears.
Reddit’s Unique Situation
Reddit sits in a unique position as its data is highly prized for AI systems, with more than 25 billion posts cited as the "most cited source" for large language models. This gives Reddit leverage, but it also licenses its data to OpenAI, and its total content deals were worth $203 million at the time of its 2024 float. Despite a booming business (first-quarter revenue up 69% year on year), the same AI answers that make its data valuable are draining the traffic its ad business needs.
Google’s Response
Google disputes the doom and gloom, stating it still sends billions of clicks to the web.