Reddit Warns of Traffic Drop Due to Google's AI Mode

Reddit lost over a million Google referrals per week in October, a decline that Steve Huffman attributes to Google’s previews and AI mode. The CEO claims that this mode no longer generates traffic to sites, leading to a drop of more than 25% in Reddit's stock and signaling a risk for the entire web.

Warning to the Web and Retreat of Tech Stocks

Steve Huffman warns the entire industry: according to him, Google’s AI mode does not generate traffic to sites. The launch of this mode was accompanied by a decline in Google’s stock. Reddit also saw its stock drop by more than 25%, despite financial results deemed solid.

Loss of Google Referrals and the Role of AI Features

In October, Reddit lost over a million Google search referrals per week, according to Steve Huffman. He attributes this decline to AI previews and the AI mode, which he sees as a fundamental change in how Google operates. Reddit states that demand for its platform has not decreased, but Google has stopped sending users to it.

Paywalls and Data License Negotiations

To limit scraping and reduce its dependence on the open web, Reddit is testing paywalls outside the United States. Steve Huffman presents this measure as a compromise: less reach, but deeper engagement. Additionally, Reddit is pursuing data license discussions with AI providers. The platform had already reached an agreement with Google that brought in significant revenue, but it is uncertain whether other agreements will be signed.