Reddit’s AI Revolution:
Boosting Ad Revenue, Data Licensing, and Search Functionality
Reddit’s second-quarter earnings report is already out, and it shows that the company is investing exponentially in artificial intelligence.
Also, they can see the impact on various aspects of the business.
A major chunk of Reddit’s revenue is coming from advertising. In Q2, the ads brought in $465 million, which is 93% of the total income. To strengthen this core business, Reddit has rolled out some AI-powered tools which will help more advertisers get more value from the platform.
In June, Reddit came up with something amazing with their data. They launched a Reddit insights, where they can scan all the comments, user posts and come up with something which will show what is trending. And by that, the advertiser gets an extreme level of value from fine campaign strategies
Alongside it. the conversation summary add-on now allows brands to display actual Reddit users’ conversations on their ads, which is very helpful for the advertiser to increase the awareness of the product through the discussion.
Beyond advertising, Reddit platform is also growing its “other revenue” stream, particularly through data licensing deals with major AI companies like Google and Open AI.
This category gained $35 million this quarter, while last year in the same quarter it earned $28.1 million. So it means there is momentum and it’s growing steadily.
Meanwhile, Reddit platform doesn’t limit its AI interface to advertisers or enterprises. Last year in December, it launched a feature called AI answer, which means if you have any questions, you can ask and get an instant answer. It is also growing fast because last year, this quarter, it had 1 million users, and this quarter in 2025, it has jumped to 6 million users.
According to CEO Steve Huffman, Reddit is now working on this AI answer tool more deeply and aiming to make this AI-powered search a central feature across Reddit.
With a clear focus on AI across both user experience and revenue channels, Reddit is working on building something for long-term purposes.
This quarter LinkedIn also have seen a record engagement. If you want to read about the full report please read this article which we have shared.