Reddit CEO: AI Chatbots Fail to Deliver Expected Traffic Growth

During Reddit's third-quarter 2025 earnings call, CEO Steve Huffman delivered a sobering assessment of AI chatbots' impact on platform traffic. Contrary to industry hype suggesting AI would revolutionize search interfaces, Huffman stated that chatbots currently contribute minimally to Reddit's visitor numbers.

The Persistent Power of Traditional Search Channels

Huffman disclosed that Google Search and direct visits each account for approximately 50% of Reddit's traffic. "These numbers are estimates, but they're quite close to reality," he told analysts when questioned about traffic sources. This revelation challenges the prevailing narrative that AI-powered interfaces would rapidly displace conventional search methods.

Strategic Data Partnerships Yield Mixed Results

The social media platform has pursued a dual-track strategy regarding AI companies:

1. Exclusive partnerships with major players like OpenAI and Google
2. Legal action against unauthorized data scraping by firms including Anthropic and Perplexity

This selective approach aims to monetize Reddit's vast content repository while protecting its intellectual property. The company began enforcing stricter data policies in May 2024, requiring formal licensing agreements for commercial use of its content in AI training.

Strong Financial Performance Despite Limited AI Impact

The quarterly report highlighted robust growth:

• Revenue: $585 million (68% year-over-year increase)
• Daily Active Users: 116 million
• Weekly Active Users: 444 million (20% growth)
• International Growth: 31% increase in daily active users outside the U.S.

The platform continues expanding its global footprint while maintaining strong engagement among American users, with over 190 million weekly U.S. visitors.

AI Integration Focuses on Enhancing Core Features

Rather than relying on external chatbot traffic, Reddit is implementing AI improvements internally:

• 20% of search queries now processed through AI-powered "Answers" feature
• 75 million weekly users utilize the search functionality
• Plans underway to fully integrate traditional and AI-enhanced search experiences

"We're unifying the AI and traditional search experience," Huffman explained. "This integration will be fully implemented over the next few quarters."

Simplifying User Onboarding for Better Retention

The company is testing streamlined onboarding processes to improve new user retention rates. "We want users to feel Reddit's unique value immediately—that there's content tailored specifically for them," Huffman emphasized. The initiative focuses on establishing relevant content connections during initial sessions to reduce cognitive barriers.

Key Points:

1. Traditional search channels still dominate Reddit's traffic sources
2. Selective data partnerships generate revenue while protecting content value
3. Platform achieves strong financial growth despite limited chatbot impact
4. Internal AI integration focuses on enhancing core search functionality
5. Simplified onboarding aims to boost new user retention rates