Reddit Stock Approaching Highs: Google AI Content Deal Could Be Coming

Reddit Inc. (RDDT) is in the spotlight as discussions with Alphabet's Google regarding an expanded generative AI content-sharing agreement emerge, adding another layer to the company's already eventful trajectory. The stock, currently trading at $251.88, has seen a dip of $14.78, representing a -0.06% change from the previous close, reflecting the market's cautious response to both the potential of the new deal and existing concerns surrounding the platform's long-term growth.

The potential for deeper integration with Google's AI products comes on the heels of Reddit's initial data-sharing agreement, inked over a year and a half ago for a reported $60 million. This new development could significantly boost Reddit's revenue streams and solidify its position as a key player in the AI training data market.

The original deal allowed Google to tap into Reddit's vast user-generated content to train its AI models, while Reddit gained access to Google's “Vertex AI” service to enhance its internal search capabilities. A deeper integration could mean more substantial financial benefits and technological advancements for both companies.

Recent financial results paint a picture of a company on the rise. In the second quarter of 2025, Reddit reported a revenue surge of 78% year-over-year, reaching $500 million. Net income stood at $89 million, a notable turnaround from previous losses. Daily active users increased by 21% to 110.4 million, and ad revenue grew by 84% to $465 million. This strong performance underscores the effectiveness of Reddit's monetization strategies and increasing user engagement.

On a positive note, strategic partnerships with major sports leagues, including the NBA, NFL, MLB, PGA Tour, and NASCAR, have enhanced Reddit's content offerings and attracted more advertising revenue. This initiative, launched in July 2024, provided users with access to video highlights, behind-the-scenes content, and interactive sessions, leading to a 4% increase in Reddit's shares following the announcement. On September 15, 2025, Reddit experienced a brief outage affecting thousands of users across the United States. While the issue was quickly resolved, such incidents can erode user trust and impact the platform's reputation.

The potential deeper integration with Google presents both opportunities and risks. It could provide Reddit with a significant revenue boost and access to cutting-edge AI technology. However, increased reliance on Google could also exacerbate existing concerns about the sustainability of Reddit's long-term growth and user engagement.