Reddit Demands Bigger Payout in Google AI Content Deal

San Francisco, September 19, 2025 — Reddit is pushing Google to renegotiate its content licensing deal for artificial intelligence training, aiming to secure higher payouts and greater oversight of how its data is used, as per Bloomberg.

The current agreement, valued at around $60 million annually, allows Google to train AI systems on Reddit’s vast archive of public posts. Now, according to people familiar with the talks, Reddit wants terms that reflect the growing value of its content in powering advanced AI tools. That includes variable pricing depending on how much and what kind of data is used, as well as clearer rules on how models can access the material.

The move comes as AI companies face mounting pressure to license data legally and transparently. Reddit, with its millions of active communities, represents one of the internet’s richest sources of human conversations – exactly the kind of content large language models rely on.

Analysts say the negotiations could reshape norms in AI licensing. “If Reddit secures better terms, other platforms will follow,” said one tech policy researcher. “It sets a precedent that user-generated content isn’t free fuel for AI models.”

For Google, keeping access to Reddit’s content is strategic. Beyond training, the partnership also powers AI-enhanced search results where Reddit answers often feature prominently. Losing or limiting that stream would hurt Google’s attempts to stay ahead in AI-powered search.

Implications at a Glance

Reddit: Stronger monetization of its content and potential new revenue models for creators.
Google: Higher costs for training AI models, but critical to maintain content access.
AI Industry: Pressure to formalize licensing deals and avoid legal or ethical risks.
Users: More visibility into how community content is used in AI systems.