Reddit shares fell sharply in Wednesday trading after reports emerged that the company is considering ending its content licensing agreement with Google.
The Wall Street Journal reported that Reddit has discussed shutting off Google's access to its user-generated content for use in artificial intelligence models, citing internal deliberations on the value of the partnership.
The stock dropped 9% in the session, extending a broader decline that has seen the shares fall approximately 19% year-to-date.
The stock dropped 9% in the session, extending a broader decline that has seen the shares fall approximately 19% year-to-date.
The sell-off reflects investor concern over the potential loss of licensing revenue, which has become a significant component of Reddit's monetization strategy as it seeks to diversify beyond traditional advertising.
The dispute highlights the growing tension between content platforms and big tech firms over the use of proprietary data for AI training.
Google's AI Overviews and other generative features have drawn criticism from publishers and social media companies alike, who argue that the technology siphons traffic and value without adequate compensation.