Reddit Aims to Become a Search Engine with a Focus on AI

• Reddit received 93% of its revenue from advertising in the second quarter.
• The company is developing its own search to attract users.
• The new Reddit Answers feature has grown to 6 million active users.

This is reported by TechCrunch, The Verge.

Reddit announced its financial results for the second quarter of 2025, stating an increase in revenue thanks to investments in artificial intelligence and advertising. The company generated $465 million from advertising, which constitutes 93% of total revenue.

One of the new features for advertisers is Reddit Insights, which analyzes posts and comments on the platform to identify trends. Another feature, Conversation Summary Add-ons, allows advertisers to include user discussions on Reddit in their ads without direct permission.

In addition, Reddit reported an increase in revenue from licensed data, which rose by 24% year-on-year to $35 million. The company has already signed deals with major AI companies, such as Google and OpenAI, to provide access to its data.

Reddit is also focusing on developing its own search capabilities. Reddit's General Director, Steve Haffman, noted that the company aims to make Reddit the primary search tool for users. The platform believes that every day, millions of people turn to Reddit for advice.

The Reddit Answers feature, launched in June, already has 6 million active users weekly. The company plans to integrate this tool deeper into the main search, which should increase its popularity.

Reddit celebrated its 20th anniversary last month, and now it aims to adapt to changes in the internet environment, with the company focusing on AI to improve user engagement.

Tags: Technology/AI