Reddit is positioning its AI-driven search capabilities as a pivotal growth opportunity for the company, aiming to enhance not only user experience but also drive revenue. During its latest earnings call, Reddit executives revealed advancements in merging traditional search with AI, acknowledging the untapped potential of an enormous market.
CEO Steve Huffman emphasized that generative AI search stands to improve the quality of responses for various queries, particularly those that require diverse perspectives rather than simple answers. He stated, “There’s a type of query we’re particularly good at…the best on the internet,” highlighting Reddit’s unique strengths.
In the past year, Reddit’s search feature has seen substantial growth, with weekly active users rising from 60 million to 80 million—a 30% increase. Moreover, the platform’s AI-driven Reddit Answers surged from 1 million users in early 2025 to 15 million by year-end, showcasing a trend of increased engagement.
As part of ongoing improvements, Reddit is modernizing its AI answers interface, aiming for richer, media-enhanced responses. The company is also rethinking its platform’s structure by moving toward a personalized experience, leveraging AI and machine learning to enhance relevance for all users, regardless of their login status, beginning in Q3 2026.
In 2025, Reddit announced plans to integrate its AI feature with its primary search functionality, making significant strides in achieving this goal by Q4. The introduction of five new languages into Reddit Answers and the trial of dynamic agents in search results underscore the company’s commitment to evolving its offerings.
Alongside these advancements, Reddit is expanding its content licensing business, allowing external companies to access and utilize its data for training AI models. This revenue stream, categorized under “other” revenues, grew by 8% year-over-year, reaching $36 million in Q4, and saw a 22% increase for the entire year, totaling $140 million. This shift reflects Reddit’s strategy to capitalize on its extensive user-generated content while diversifying its revenue sources.
