"As this co-dependence became outwardly obvious, another aspect of their relationship - this one more formal - was being negotiated in private. Google didn't just need Reddit to fill out its search product. It needed Reddit to train its AI models and to provide those models with fresh material to retrieve, summarize, and synthesize once they were deployed in products."
"Reddit Inc. is in early talks to strike its next content-sharing agreement with Alphabet Inc.'s Google, aiming to extract more value from future deals now that its data plays a prominent role in search results and generative AI training. Reddit, more than a year and a half after its first data-sharing deal with Google for a reported $60 million, is in talks for deeper integration with Google's AI products, according to executives familiar with the discussions."
Google Search has routed large volumes of users to Reddit across many topics after users began appending Reddit to queries. Google increased visibility for Reddit posts, and Reddit welcomed the resulting traffic, coinciding with strong post-IPO performance and doubled revenue. Private licensing deals gave Google access to Reddit data for AI training and for use in retrieval, summarization, and synthesis by deployed models. As search and AI products converge, the separation between search visibility and licensing may blur. Reddit is negotiating new content-sharing terms to extract more value and pursue deeper integration with Google's AI products.
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