News: 0184831006

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As Reddit Stock Falls, CEO Questions Value of Google's AI Overviews

(Monday August 03, 2026 @05:00PM (BeauHD) from the called-out dept.)


Reddit CEO Steve Huffman criticized Google's AI Overviews for [1]summarizing publishers' content without delivering the traffic benefits of traditional search , arguing that users increasingly value Reddit's human perspectives and firsthand experiences. Ars Technica reports:

> First, there was a [2]letter to investors (PDF), wherein Huffman spun his narrative about Reddit's value proposition and general strategic direction amid the proliferation of AI tools. He wrote: "As the internet becomes flooded with synthetic content, people are craving real human perspective. We are the antidote to an automated web. AI compresses the internet into summaries. Reddit delivers the opposite: deep discussions, passionate debates, and lived experiences. People don't want a summary of Reddit; they want Reddit."

>

> The letter also said: "As AI makes information more abundant, the challenge is no longer finding content -- it's finding context, personal opinion, and first-hand accounts. Everything online feels flat, polished, generated, or sponsored, so consumers are overwhelmed and increasingly skeptical. We've never had more information, but we've never trusted it less."

>

> And then, in comments around the earnings report, he [3]added : "What we see is, 10 blue links has driven tremendous value and growth to the broader ecosystem... from where we sit, AI Overviews has yet to make a similar level of positive impact, and I think that's consistent across the broader landscape, right? As businesses, publishers, retailers, we're still looking for that win-win."

Reddit shares nevertheless [4]fell more than 20 percent as investors worried that unstable Google referrals could undermine its growth, even after a strong earnings report.



[1] https://arstechnica.com/ai/2026/08/reddit-ceo-on-ai-overviews-were-still-looking-for-that-win-win/

[2] https://s203.q4cdn.com/380862485/files/doc_financials/2026/q2/Q2-26-Shareholder-Letter.pdf

[3] https://www.engadget.com/2227553/reddit-s-ceo-sure-seems-frustrated-with-google-s-ai-overviews/

[4] https://finance.yahoo.com/markets/stocks/articles/why-reddit-rddt-shares-getting-154757142.html



Still upset over removal of 3rd party clients (Score:1)

by AcidFnTonic ( 791034 )

Still upset over removal of 3rd party clients. Screw you Steve.

Re: Still upset over removal of 3rd party clients (Score:4, Interesting)

by SeaFox ( 739806 )

They didn't remove third-party clients. You just don't get a free lunch anymore. I use Relay. It's a monthly subscription (as low as $1/mo) to pay for the API calls to interact with the site. But for that I don't get any ads and from my understanding a better interface.

Re: Still upset over removal of 3rd party clients (Score:2)

by SeaFox ( 739806 )

Did you miss the "no ads" part?

Reddit has become basically useless (Score:5, Insightful)

by rsilvergun ( 571051 )

AI slop posts farming karma so they can do scams and political post floods during an election season mean all of the discussion on any of the hobbyist forums is basically garbage. You get the same low effort obvious bot posts pretty much everywhere. Besides that there's the usual outrage porn all over the place designed to get you all angry so you will engage.

All that stuff was always a bit of a problem but the AI chat bots have made it so much worse.

Re: Reddit has become basically useless (Score:2)

by dj245 ( 732906 )

That's only half of the potential problem here. I've experienced model hallucinations where the model seems to have completely fabricated ideas or conclusions which it says are included in a reddit thread. The latest version of mainstream Claude (via Perplexity) is still doing this.

Re: (Score:2)

by geek ( 5680 )

Isn't limited to reddit. It's every social media site and almost every comment section online. I'm actually appreciative of the sites that don't have comment sections or require an extra click to view them these days.

Re:Reddit has become basically useless (Score:4, Informative)

by Valgrus Thunderaxe ( 8769977 )

political post floods

Coming from you this particular grievance is very rich.

Must login to view (Score:2)

by jhoegl ( 638955 )

Must login to view content

Wonders why traffic is down....

AI is the enemy!

Soon, "Reports AI bots all over Reddit, Reddit states increase in users is massive!"

Re: (Score:2)

by smooth wombat ( 796938 )

I don't have to log in to view Reddit content. Never have. In fact, I was just perusing a subreddit two minutes ago without issue.

Re: Must login to view (Score:2)

by RegistrationIsDumb83 ( 6517138 )

Seems to be a phased rollout. Hasn't hit me yet, but the moment it does my minimal use of reddit will go to zero.

Re: (Score:2)

by evil_aaronm ( 671521 )

Yep. I don't have an account - I had four get perma-killed, so fk those guys - and iOS was allowed to see pages on something like an every other day basis. However, as of this week, on iOS, I can't see anything on reddit without logging in. On the desktop, it's starting to get to "every other day" status. So, bye reddit. I hope your stock dies.

Re: (Score:2)

by Baron_Yam ( 643147 )

I had some business reasons to have an account and participate in a few niche subs. The subs were niche enough to mostly be enthusiastic friendly people, but it didn't take long to notice the patterns of the same ideas making the rounds.

Then one of my posts was removed for reasons I don't understand (and didn't try). Whatever the mod was thinking, I just gave up, deleted my historical posts and removed my account. Not worth the effort.

Up to that point, old.reddit.com was working (with or without signing

The Value of AI? (Score:2)

by DerKlempner ( 249063 )

Reddit's CEO is questioning the value of Google's AI? Based on the amount of AI garbage being posted on the site, one would assume that Reddit is completely fine with AI and its contributions to Reddit in general.

Re: The Value of AI? (Score:2)

by drinkypoo ( 153816 )

Reddit is indeed choked with AI slop, but that doesn't mean this is wrong. All that means is that nobody should know better how bad slop is.

Gemini search results are fundamentally sloppy. They are sometimes kind of useful but like all LLM output you must check the results carefully. And doing so is the quickest way to get pissed off at the AI search results because you will rapidly find that the provided citations don't support the source text. Ironically, this does not make it wrong! Often the text is corr

Re: (Score:2)

by MightyMartian ( 840721 )

Truth Social I'm sure. As hard as it is to believe, there are still people who think Trump is a genius, and still want to "own the Libs".

Reddit for Human Content (Score:2)

by SmaryJerry ( 2759091 )

Going to Reddit for human content is like going to fried chicken place for their salad - yes it exists but its a side dish and crammed with a ton of unhealthy stuff.

Re:Reddit for [Funny] Human Content (Score:2)

by shanen ( 462549 )

Mod parent Funny, though I cannot recall any humor from Redit. Pretty sure I tried to find something funny on several of my visits, but some years since I abandoned hope of finding anything useful there. Some sort of disclaimer needed, but I never detected anything useful on Redit, even though some useless search engine (AKA goog) kept sending me there.

I do have a theory of what went wrong. It's kind of a good idea and they were able to coast on that for a while before spinning out. But the reason Reddit sp

Re: Reddit for [Funny] Human Content (Score:2)

by drinkypoo ( 153816 )

Slashdot's main problem is the total lack of will to fix anything. For example they know who the pure trolls are, but won't stop them. In fact they disabled but then re-enabled anonymous posting via the checkbox, presumably because their post count fell too low without the trollbags.

Reddit as we knew it died the weekend of July 4th (Score:5, Interesting)

by pla ( 258480 )

Reddit's problems have nothing to do with Google and everything to do with gross incompetence.

I've been a prolific Redditor for some 10-15 years. That ended overnight when they stopped allowing anonymous access to old.reddit.com. If I and a handful of fellow geeks were the only holdouts against their god-awful "new" experience, that wouldn't matter. Problem is, the vast majority of Reddit's mods are - were - in the same camp.

Accordingly, Reddit has effectively rolled over and surrendered to the bots, and now Spez wonders why their stock price is tanking? They have bots policing bots posting for bots learning from bots and arguing with bots. Far from improving the situation, AI has made the whole mess even harder for the rapidly dwindling pool of humans to deal with.

MMW, a year from now Reddit will be nothing more than playground for AIs. Whether or not it remains viable as a company largely depends on how long they can hide that information from investors and advertisers.

Re: (Score:2)

by PPH ( 736903 )

> That ended overnight when they stopped allowing anonymous access to old.reddit.com.

So, the anonymous access?

Meh. I can't even remember how many pseudonymous Reddit accounts I've had. Wear one out, switch to a new one. Sometimes I get in an argument with myself between two identities. In the grand tradition of [1]Galileo [wikipedia.org].

[1] https://en.wikipedia.org/wiki/Dialogue_Concerning_the_Two_Chief_World_Systems

Re: (Score:2)

by evil_aaronm ( 671521 )

I simply incremented a number - starting at 00, then 01, etc - and by the time I would've hit "name04," some asshole perma-killed me before 24 hours. I hadn't even posted anything, so some douche mod must've been watching for "name0x." Didn't bother creating a new account, and I can't see anything without logging in, so bye reddit.

Re: (Score:2)

by OverlordQ ( 264228 )

> That ended overnight when they stopped allowing anonymous access to old.reddit.com. [..] Problem is, the vast majority of Reddit's mods are - were - in the same camp.

What? If you're a mod, you're logged in, if you're logged in, you can use old reddit.

Re: (Score:2)

by pla ( 258480 )

While performing mod duties, you're right.

Mods are still regular users of the site, though and not everyone wants /r/PonyLovers in their viewing history.

Reddit is screwed. (Score:5, Interesting)

by Puls4r ( 724907 )

They want to stop Google from scraping and presenting Reddit posts as results. But turning off google scraping makes it impossible to search for your content for 90% of the web users, who all use google.

At the same time, you've enshittified Reddit to the point where you *block* people on mobile from viewing posts in an attempt to force the use of your horrible app, driving away potential users.

This isn't a real business model. Reddit tried to monetize themselves and didn't have any idea how to do it. They continue to shoot themselves in the foot. Their single STRENGTH, the long-term searchable content viewable by users, has been shot in the foot by restricting mobile viewing while the google scrapers have no such limitation. This literally drives people to simply stop at the google AI summary and not even bother with the reddit site.

The Problem (Score:2)

by Bahbus ( 1180627 )

with Reddit *is* Steve Huffman. Reddit has always been a D+ website. A lot of good information hidden among useless information and an absolute trash UI/UX. He doesn't understand how to run a website, let alone an entire business.

Their content management system... (Score:2)

by humankind ( 704050 )

I will say this... as a long time mod for some popular communities, Reddit has really refined their content management systems and they do have the capability to restrict AI slop if they want to. It will be interesting to see if they can reliably do this in a way to avoid being contaminated?

Competing things make Reddit sad (Score:1)

by br1984 ( 9617674 )

Reddit sad that stock falling because competition competes with useful stuff people actually use. But Reddit doesn't want people to be misled into liking what they actually like. Listen to Reddit, don't believe your lying eyes. In my own recent use, Google AI answers have overall proven to be useful, not perfect, for solving many daily Linux configuration issues of various apps and tools. I deleted my Reddit account and posts years ago when they banned 3rd party clients. I still "redd" the content once in

Reddit and search are shit. AI summary is best. (Score:2)

by TheMiddleRoad ( 1153113 )

With links to trust but verify. And google should pay their sources.

LOL (Score:2)

by nehumanuscrede ( 624750 )

It's Reddit.

Outside of the rare niche subreddits which:

1) Aren't full of a$$holes

2) Don't have a moderator on a power trip

3) Actually provide useful information

The majority of Reddit is a toxic echo chamber full of folks who will

karma bomb you into oblivion the moment you dare say anything that

doesn't jive with current group-think.

I laughed when they went public and I will continue to laugh as

that ship slowly sinks into the ocean of forgotten web sites.

( Say hello to MySpace when you get there :P )

Good For The Goose (Score:2)

by WankerWeasel ( 875277 )

Reddit's business model is stealing content and discussion from other sites and maintaining it on their own. So now he gets millions from Google to scape the content of Reddit to train AI but is upset that the same AI he's training then results in them getting less traffic, so that he can then syphon off the traffic from other sites who actually created the content? Wow.

My irony meter just blew-up (Score:2)

by Mirnotoriety ( 10462951 )

Reddit CEO Steve Huffman criticized Google's AI Overviews for summarizing publishers' content without delivering the traffic benefits of traditional search, arguing that users increasingly value Reddit's human perspectives and firsthand experiences.

This is ironic. Reddit’s core value comes entirely from unpaid volunteers and cryptocurrency “investments” and set of power mods that maintain ideological purity. Reddit is essentially worthless.

Reddit has become an echo chamber (on most subs) (Score:1)

by memory_register ( 6248354 )

If you step out of line, even a little, against the accepted narratives on subreddits, get ready to be harassed, bullied, and banned. Reddit still has some truly awesome subs with great communities, but all the major ones (/humor comes to mind) are sad shells of their former selves.

Pot, kettle (Score:1)

by supabeast! ( 84658 )

Most popular subreddits are overrun with bots. r/politics and r/conservative are notorious hives of bots regurgitating talking points at each other. Discussions of Israel and China are always hit by bots spreading the same propaganda. And every little sub is getting hit by bots recycling old posts. If reddit is supposed to be a place for humans then the company sucks at it.

Which thing has less value? (Score:2)

by Tony Isaac ( 1301187 )

(Most) Reddit threads, or Google AI summaries?

The documentation is in Japanese. Good luck.
-- Rich $alz