Reddit (NYSE: RDDT)'s data licensing deals with Alphabet Inc. (NASDAQ:GOOGL)'s Google and OpenAI are set to expire next year, and Wall Street simply can't decide whether these deals are a windfall or a warning sign.
On September 2, Baird ***** yst Colin Sebastian reiterated a Neutral rating and $185.00 price target on the stock. The note implies the next big test for Reddit: deciding whether its massive archive of human conversations are still of use to artificial intelligence companies.
According to the firm's ***** sment, the current share price reflects an outcome near the firm's low-end case scenario.
Reddit made a 2024 Google deal that lets Google use its posts to train and power its AI models. Reportedly worth $60 million a year, the deal is set to expire after which Reddit may reportedly choose to block Google's AI from using its content. A similar deal between Reddit and OpenAI estimated around $70 million is also set to expire soon.
Some other publishers such as USA Today, Reuters, Politico are also re-evaluating whether to let Google crawl their pages as AI summaries reduce referral traffic.

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