Reddit CEO Steve Huffman just delivered a reality check on AI's traffic impact. During the company's Q3 earnings call, he revealed that chatbots aren't driving meaningful visits to the platform, even as AI companies tout search breakthroughs. Google search and direct access remain Reddit's primary traffic sources, each accounting for roughly 50% of visits according to Huffman's remarks to analysts.
Reddit CEO Steve Huffman just threw cold water on the AI traffic revolution narrative. During the company's Q3 earnings call, he told analysts point-blank that chatbots "are not a major traffic driver today" for the social platform, even as companies like OpenAI and Google celebrate breakthroughs in AI-powered search.
The admission is striking given Reddit's central role in training the very AI models that are supposed to be reshaping how people discover content. When an analyst pressed Huffman on traffic sources, he confirmed that Google search and direct access continue dominating, splitting roughly 50-50 - numbers he called "approximate, but pretty close."
"I think our relationships with the companies that we work for - or work with directly are healthy, and we both learned a lot over the last couple of years, really the value of Reddit's data," Huffman said during the earnings call. "But they're not a major traffic driver today."
The comment reveals a fascinating disconnect between AI hype and actual user behavior. While tech giants push chatbot interfaces as the future of search, Reddit users apparently still prefer traditional discovery methods for reaching the platform's discussions and communities.
Reddit's relationship with AI companies has been anything but smooth. The company locked down its data in May 2024, requiring licenses for commercial use, while simultaneously signing a partnership with OpenAI for model training. The platform also has licensing agreements with Google but is actively suing Anthropic and Perplexity over data usage.
Despite the chatbot traffic revelation, Reddit delivered impressive Q3 numbers. Revenue hit $585 million, jumping 68% year-over-year, while the platform reached 116 million daily active users and 444 million weekly active users - both up 20% annually. International growth particularly stood out, with daily users outside the US growing 31% year-over-year.
Interestingly, Reddit is doubling down on its own search capabilities. Huffman revealed that 75 million people search weekly on the platform, with Reddit's AI-powered Answers now handling 20% of search volumes. The company is working to unify its AI and core search experiences, with rollout expected "in the next few quarters."
The platform is also experimenting with streamlined onboarding to boost early user engagement. "We want them to see in their first session that Reddit is amazing and has content for them," Huffman explained, emphasizing quick connections to relevant content.
For the broader AI industry, Reddit's traffic data poses uncomfortable questions about the actual adoption of AI-powered discovery tools. If one of the most AI-training-data-rich platforms isn't seeing chatbot traffic, it suggests the transition from traditional search to AI interfaces is happening more slowly than Silicon Valley admits.
Huffman's candid admission about chatbot traffic reveals a significant gap between AI industry promises and real-world adoption. While Reddit continues growing its user base and revenue through traditional channels, the slow uptake of AI-driven discovery suggests the search revolution may take longer than expected. For investors and tech watchers, Reddit's experience offers a sobering metric for measuring AI's actual impact on content consumption patterns.
