Reddit Finds a Sweet Spot as AI Transforms Internet Search

Reddit Finds a Sweet Spot as AI Transforms Internet Search

San Francisco — As artificial intelligence reshapes how people retrieve information online, Reddit is finding itself in an enviable position at the crossroads of AI and human-generated content.

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A recent analysis by The Wall Street Journal highlights that AI-powered chatbots—such as ChatGPT, Perplexity, and Google Gemini—frequently cite Reddit as a valuable source of authentic, community-driven knowledge.

This exposure has helped fuel a 24% surge in Reddit’s stock price following its latest earnings report, as well as a rebound in daily active users to 50.3 million.

Reddit’s growth momentum is supported by robust financial performance. In Q2 2025, the platform posted its most profitable quarter yet, with $500 million in revenue (up 78% year-on-year) and $89 million in net income.

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Key to this success was its native search strategy—boasting 70 million weekly users, with 6 million engaging with its AI-powered tool, Reddit Answers.

The company is now unifying Reddit Answers with its core search feature to create a seamless, AI-enhanced search experience embedded within the platform.

CEO Steve Huffman emphasized Reddit’s unique advantage: the vibrant “human conversations” that AI increasingly leans on to deliver context-rich answers.

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In essence, Reddit lies in a “sweet spot”—it is both a trusted source for AI tools and an emerging search destination in its own right. As AI changes the search landscape, human-generated discourse remains at the heart of digital knowledge discovery.

By Shomirul Islam Bonny

Hi, I'm Shomirul Islam Bonny, a Front-End Web Developer currently serving as the CTO at Sarawak Daily. I'm passionate about technology and enjoy sharing my tech knowledge with others.