Reddit CEO: AI Chatbots Fail to Drive Traffic as Q3 Revenue Soars
Reddit CEO Steve Huffman confirmed that AI chatbots are not a significant source of Reddit traffic. Traditional channels—Google Search and direct visits—each account for roughly 50% of all visits, underscoring the enduring importance of organic search and direct user relationships. Despite partnerships with OpenAI and Google for dataset licensing and model training, external AI referrals have yet to boost engagement.
Reddit has shifted its data licensing strategy, requiring commercial contracts for access to its datasets, and is pursuing legal action against unauthorized scrapers such as Anthropic and Perplexity. Internally, the company is investing in AI to improve on-platform search: its AI-powered Answers feature now handles 20% of search queries, serving 75 million users weekly.
Financially, Reddit reported strong Q3 2025 results: $585 million in revenue (up 68% year-on-year), 116 million daily active users (+20%), and 444 million weekly active users (+20%), with international daily users up 31%. These figures highlight Reddit’s robust growth driven by advertising, data monetization, and AI-enhanced features.
For crypto traders, Reddit’s evolving data licensing model may set a precedent for monetizing digital platforms in the AI era, but the limited impact of AI chatbots on Reddit traffic underscores the continued value of traditional traffic sources.
Neutral
The news focuses on Reddit’s traffic sources, data licensing strategy, and strong Q3 financial results rather than any specific cryptocurrency. While the shift towards commercial data licensing and AI-enhanced search features demonstrates a robust monetization approach, it does not directly influence crypto tokens or market sentiment. Short-term, traders are unlikely to adjust positions based on platform traffic metrics alone. Long-term, the precedent of platform data monetization in the AI era may inspire tokenization models, but any impact on crypto markets remains indirect and muted—warranting a neutral stance.