Reddit Eyes AI Search Integration as Key Revenue Driver and User Growth Opportunity

Reddit announces its plans to integrate AI-powered search, aiming to boost both revenue and user engagement. The company sees this as a significant market opportunity, particularly with the growth of generative AI, which it believes will outperform traditional search for many queries.

AI Search Gains Traction

During the fourth-quarter earnings call, Reddit CEO Steve Huffman highlights the potential of AI in transforming the search experience. 'There’s a type of query we’re, I think, particularly good at — I would argue, the best on the internet — which is questions that have no answers, where the answer actually is multiple perspectives from lots of people,' Huffman says.

Reddit's weekly active users for search grew 30% over the past year, from 60 million to 80 million. Meanwhile, the AI-powered Reddit Answers saw a surge from 1 million to 15 million weekly active users within the same period.

Modernizing the Interface

The company is working to modernize the AI answers interface by making responses more media-rich. Pilots for these enhancements are already underway. Reddit aims to position itself not just as a social site but as a go-to platform for diverse and nuanced answers.

Personalization and Monetization

Starting in Q3 2026, Reddit will eliminate the distinction between logged-in and logged-out users, personalizing the site for all visitors using AI and machine learning. This move is part of a broader strategy to make the platform more relevant and engaging.

While Reddit's AI answers are gaining traction, the company is also expanding its content licensing business, allowing other companies to train their AI models on Reddit's data. This non-ad revenue stream increased by 8% year-over-year, reaching $36 million in Q4 and $140 million for 2025.

Unified Search Experience

Reddit has made significant progress in unifying its core search and AI feature. In the fourth quarter, the company released Reddit Answers in five new languages and is piloting dynamic agents and media-rich search results.

As Reddit continues to invest in AI, the company sees a future where its platform becomes a central hub for both community interaction and information discovery, driven by advanced AI technologies.

References

• Reddit looks to AI search as its next big opportunity | TechCrunch