What happened
Reddit CEO Steve Huffman said Google's AI-powered search features do not send traffic to external sites. According to Huffman, AI Overviews and AI Mode answer users' questions directly, so they generate clicks "for anybody."
What the numbers show
Reddit lost more than one million Google search referrals per week in October. The company's stock dropped more than 25 percent despite strong earnings results.
Reddit's response
Reddit has begun testing login barriers and aims to become a direct destination that is less reliant on the open web. The strategy shifts a business model that has depended on visitors arriving from search engines.
Why it matters
Huffman says the shift threatens not only Reddit but every content business that depends on search traffic. As AI answers take prominence in search results, publishers face pressure on advertising and visitor revenue.
