Reddit targets 1 billion users after going public, AI deals

What happened

Reddit went public in 2024 and became profitable for the first time in its history, driven by growth in users and advertising revenue. The platform now attracts more than 120 million daily users across over 100,000 active communities. The company has also signed licensing deals with Google and OpenAI in 2024, creating a new revenue stream by selling legal access to its archive of conversations for AI training and products.

Why it matters

Reddit's value lies in its reputation for authentic, human-generated conversation at a time when users increasingly seek trustworthy recommendations over AI-generated content and SEO-driven websites. The licensing deals represent a shift in how social platforms monetize—selling the conversations themselves as a product, not just advertising space. However, the company faces a balancing act: if AI-generated content infiltrates Reddit or users feel their unpaid contributions are being exploited, it could undermine the authenticity that makes both the platform and its archive valuable.

What to watch

Wong states the company's goal is 1 billion users, positioning Reddit as still in early stages of monetization and product development. A key challenge will be whether volunteer moderators—who are not on Reddit's payroll and operate independently—will support commercialization efforts without prioritizing the company's business goals over their communities' values.