Reddit CEO Steve Huffman warned the entire web that Google AI Mode and AI Overviews do not drive traffic for anybody. Following this shift, Reddit shares dropped over 25 percent despite strong earnings after Huffman revealed the platform lost more than one million Google search referrals per week in October. Huffman stated that this drop represents a fundamental shift in how Google works, noting that the platform simply stopped sending users to Reddit even though user demand has not changed.
In response to the lost referral traffic, Reddit is currently testing login walls outside the United States to curb scraping and reduce its reliance on the open web. Huffman views this strategic shift as a trade-off that results in less reach in exchange for deeper user engagement. Meanwhile, data licensing discussions with AI providers are ongoing, though future deals remain uncertain despite Reddit having previously profited from a major agreement with Google.
This severe traffic decline hitting Reddit serves as a stark warning for the entire web. Any online business that depends heavily on Google for organic traffic now faces the exact same structural risk.