For years, Reddit thrived as a bastion of authentic online discussion. Between 2022 and 2023, the platform saw a significant surge in new users, with more people actively engaging while logged in rather than passively browsing. However, by late 2023, a shift occurred—logged-out users began to outnumber those logged in. This decline wasn’t due to external competition or a loss of interest but rather a direct consequence of Reddit’s own business decision: selling its data for AI training.
The Strength of Reddit: Authenticity
Reddit’s greatest asset has always been its authenticity. Unlike other social platforms that focus on curated content, Reddit provides a space where real people share real experiences, ask genuine questions, and contribute honest opinions. This authenticity is so valuable that many internet users include the word “Reddit” in their search queries to ensure they find firsthand experiences instead of generic, SEO-optimized content.
This unique strength gave Reddit a competitive edge over other websites, making it a primary destination for those seeking community-driven insights. However, in February 2021, Reddit entered into a deal with Google, licensing its content for AI training at an annual value of $60 million. At the time, this seemed like a lucrative partnership, but the long-term consequences were not immediately clear.
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The Rise of Generative AI and Its Impact on Reddit
As generative AI services advanced, the value of Reddit’s authentic discussions became even more apparent. Internet users preferred Reddit’s user-generated content over AI-produced summaries, leading to the platform’s impressive growth in 2022 and 2023.
However, this growth was short-lived. In early 2024, Google rolled out AI Overview, an AI-powered feature embedded directly into Google Search. With access to Reddit’s vast dataset, Google’s AI became capable of generating responses that closely mimicked real-life experiences—responses extracted and refined from genuine Reddit discussions. The very asset that made Reddit unique had been handed over to an AI competitor, effectively undermining the platform’s value.
The Fallout: Losing the Internet Pie
By the third quarter of 2023, data revealed a concerning trend: more Reddit users were browsing the platform without logging in. This shift suggested that while people still sought Reddit’s content, they were engaging with it differently—perhaps relying on Google’s AI-generated summaries rather than participating in discussions firsthand. The deal that once seemed like a financial win had inadvertently weakened Reddit’s grip on the internet content landscape.
Reddit’s Dilemma: Money vs. Authenticity
Looking ahead, Reddit faces a difficult choice. As long as the agreement with Google remains in place, new user-generated content will continue feeding AI models, making it easier for AI to replicate the platform’s unique value proposition. While the $60 million annual deal provides a steady revenue stream, it comes at the cost of Reddit’s distinctiveness.
Ultimately, Reddit must decide: does it continue licensing its content and risk losing its reputation as a hub for genuine discussion, or does it reclaim its uniqueness by severing ties with AI training partnerships? The answer will determine whether Reddit remains an indispensable part of the internet or fades into a diluted, AI-powered information source indistinguishable from the algorithms it helped train.
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