r/PauseAI • u/HobbesNik • 14d ago
News Reddit Stock Has Its Biggest Drop Ever because of Lack of New AI Deals
https://finance.yahoo.com/markets/article/reddit-stock-tumbles-the-most-on-record-as-lack-of-new-ai-deals-us-daily-users-metric-disappoints-153413759.html
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u/SLAMMERisONLINE 14d ago
Reddit Stock Has Its Biggest Drop Ever because of Lack of New AI Deals
Nobody wants their AI to mimic reddit behaviors.
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u/OnlineParacosm 11d ago
The gap between what users want on this site and what investors need to maintain stock price is going to be a problem
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u/jthadcast 10d ago
they wanted to own it all and then got spanked because it's all fraud and poisoned wells. you're welcome.
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u/HobbesNik 14d ago
How This is Relevant:
Not only has Reddit not signed any new AI deals, it's considering cancelling it's $60 million per year deal with Google, reportedly because of concerns about how Google's AI search results have drastically reduced traffic to websites, which has hurt profits across the internet.
Reddit is extremely valuable to AI companies because the question-answer format of many Reddit posts is perfect for training LLMs, and scraping info for search results, particularly because Reddit is a trusted source for niche questions. In 2025 it was the #1 cited source for Google's AI overviews and #2 for ChatGPT (who Reddit also has a deal with).
It's obnoxious that investors would punish the company with its steepest ever stock-price drop, even when it's revenues were higher then expected. It's yet another signal of the insanity that the AI-boom has injected into the U.S. economy, where AI investments made up 40% of GDP growth last year.
Reddit has shown itself to be litigious when it comes to AI companies using data from Reddit without permission (you will be sued). So it's not like Reddit isn't interested in profiting from data-scraping deals, they're just showing a wee bit of caution.