On Thursday, Reddit announced that its AI-powered search engine presents a significant opportunity for the company’s growth, not only in product development but also in enhancing its revenue streams. During the fourth-quarter earnings call, the company provided an update on its strategy to integrate traditional and AI-based search functionalities, emphasizing that while the search feature is not currently monetized, it represents a substantial market opportunity.
Reddit points out that generative AI search is expected to offer superior results for most queries.
“We excel at a specific type of query—one that I would argue we are the best at on the internet—namely, questions without definitive answers, where the optimal response encompasses multiple viewpoints from various individuals,” stated Reddit CEO Steve Huffman.
In contrast, traditional search functions more like navigation, serving to locate the appropriate link related to a topic or subreddit. However, Huffman mentioned that large language models (LLMs) might surpass traditional search capabilities in this regard. “This is the trajectory we’re pursuing,” he added.
The CEO also reported a 30% increase in weekly active users engaging with the search feature, rising from 60 million to 80 million over the past year. Additionally, engagement with Reddit’s AI-powered Answers grew from 1 million users in Q1 2025 to 15 million by Q4.
“We are witnessing substantial growth in this area, and I believe the potential is immense,” Huffman remarked.
To enhance user experience, Reddit is modernizing its AI Answers interface by making responses more media-rich, with pilot programs already in progress.
The company is also evaluating its role beyond a social platform, aiming to become a trusted source for answers. Investors were informed that Reddit is phasing out the distinction between logged-in and logged-out users starting in Q3 2026. This initiative will leverage AI and machine learning to deliver personalized experiences relevant to all visitors.
In 2025, Reddit announced plans to integrate its AI search feature, Reddit Answers, with its traditional search engine to enhance user experiences. The fourth quarter report revealed “significant progress” in unifying these core search functionalities, alongside the introduction of five new languages for Reddit Answers and the testing of dynamic agents that incorporate media beyond text within search results.
While Reddit recognizes the value of its AI answer capabilities, it is also expanding its content licensing business, allowing external companies to train their AI models using Reddit’s data. This revenue stream is categorized under Reddit’s “other” revenues—non-advertising-related earnings. The “other” revenue segment grew by 8% year-over-year, reaching $36 million in Q4 and increasing by 22% to $140 million for the full year of 2025.
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