Reddit might restrict Google’s access to its content due to traffic generated by AI.

      For two decades, the arrangement between Google and online publishers was straightforward. Publishers allowed Google to index their websites, and in return, Google directed traffic to those sites. However, this agreement is starting to unravel.

      Reddit has emerged as the latest and most prominent indicator of this shift. Its stock dropped roughly 9% on Wednesday after the Wall Street Journal reported that the company is considering terminating Google’s access to its content for artificial intelligence purposes. In 2024, they had a deal allowing Google to train its AI models using Reddit posts, which was valued at about $60 million annually. Now, as that agreement approaches its conclusion, Reddit is uncertain about renewing it under the existing conditions.

      The driving factor behind this reconsideration is website traffic. Google’s AI-generated summaries often appear at the top of search results, which leads users to read the summary without clicking through to the actual site. Since Reddit monetizes its traffic through ads aimed at users that Google previously directed to its platform, a decline in clicks translates to reduced revenue. Reportedly, Reddit executives prefer that any future agreement be based on usage rather than a flat fee.

      A spokesperson for Reddit conveyed a measured perspective, stating that the company is engaging in negotiations "just like any business should, prioritizing what’s best for Reddit." They noted that while circumstances have changed since the initial agreements, their goals remain consistent.

      Expanding beyond Reddit, the situation affects several other publishers as well. According to the Journal, USA Today, Reuters, Politico, The Economist, and People Inc. are all considering how, or if, they will continue their partnerships with Google.

      The statistics illustrate the frustration. From June 2025 to June 2026, Google referral traffic at Politico dropped by 23%, and CNN experienced a decline of approximately 25%. Business Insider saw a staggering decrease of over 85%. Some publishers have abandoned a polite approach. Mike Reed, CEO of USA Today, expressed in an interview with Digiday, “It’s time to take a stand and say enough is enough.” Independent studies indicate that click-through rates can fall by one-third to one-half when an AI-generated overview is presented.

      For businesses reliant on referral traffic, such losses are significant. They equate to a loss of revenue.

      Reddit finds itself in a peculiar situation. Its data is valuable because AI systems depend on it extensively. Chief Financial Officer Drew Vollero has referred to Reddit as the “most cited source” for large language models, boasting over 25 billion posts. CEO Steve Huffman has likened the platform’s discussions to being “like oil for the modern internet.”

      This positions Reddit advantageously; it also licenses its data to OpenAI, and by the time of its 2024 public offering, its total content agreements were valued at $203 million. The business is thriving, with a 69% year-on-year revenue increase in the first quarter, and Reddit is scheduled to report again on 30 July. However, the same AI results that enhance the value of its data are simultaneously reducing the traffic necessary for its advertising business. Thus, Reddit is both a provider and a victim.

      In response, Google challenges this bleak outlook. The company asserts that it still generates billions of clicks for the internet daily and that AI Overviews distribute traffic to a broader array of sites. Liz Reid, the head of Google Search, insists that blue links are not disappearing.

      “Search loses its value if the web isn’t thriving,” she told Tech Brew, “and we care about that more than any other company in the world.”

      Publishers, however, remain skeptical. Google provides a tool to prevent AI from training on their content, but utilizing it could negatively impact a site's position in regular search outcomes. The UK competition regulator has instructed Google to allow publishers to opt out without facing that penalty, a measure that is currently being trialed there.

      The traditional exchange of links for web traffic is deteriorating. Some publishers are already beginning to charge AI crawlers or block them entirely, and there has yet to be consensus on what will take its place. Reddit has made this pressing issue impossible to overlook.