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Reddit looks to AI search as its next big opportunity
Reddit is set to leverage AI for its search capabilities, viewing it as a significant business opportunity. The company plans to merge traditional and AI search, believes generative AI can better address queries, and reports growth in users for AI-powered features. By 2026, Reddit aims to personalize user experiences using AI, while also expanding its content licensing business that supports AI model training.
Key points
- Reddit's AI-powered search engine is seen as a new business opportunity and potential revenue driver.
- The CEO notes that generative AI search could be superior for complex queries needing diverse perspectives.
- Weekly active users for Reddit's AI Answers grew from 1M to 15M quarter over quarter in 2025.
- The company is modernizing its AI answers interface to include more media-rich content.
- By Q3 2026, Reddit will aim to personalize experiences without distinguishing between logged-in and logged-out users.
- Revenue from content licensing for AI training models rose 8% year-over-year, contributing to a 22% rise in other revenue streams.
Why it matters
- The rise of AI technologies is pivotal for companies in 2025, aligning with trends of AI integration in search functionalities.
- Generative AI is increasingly vital for businesses, as seen in other tech firms enhancing user interaction and personalization.
- Reddit's strategy reflects a broader move among social platforms to monetize AI capabilities amidst growing user engagement.
Reddit's proactive approach to integrate AI within its search functionality positions it strategically for growth, as it enhances user engagement and opens new revenue streams in the evolving digital landscape.