Reddit is set to transform into a "logged-in only experience," a strategic shift aimed at establishing the platform as a direct daily habit rather than relying on search engine referrals. CEO Steve Huffman announced the change during an investor call, noting that while exact details are still being finalized, the company plans to move quickly. Testing will commence soon in regions outside the United States before the feature is activated globally.
The decision comes as Reddit faces significant challenges from artificial intelligence. Huffman revealed that the site lost an average of one million search engine referrals per week in October alone. He explained that AI summaries now often provide answers directly on search results pages, preventing users from clicking through to original Reddit threads. "Google has really shifted in their relationship with the rest of the internet," Huffman stated during the Q&A session.
Despite the drop in organic search traffic, Huffman emphasized that over 80% of Reddit's revenue is generated by logged-in and app users. To support this shift, the company is focusing on algorithmic feeds, improved app performance, AI-powered moderation tools, and new experiences such as games and visual podcasts. The latter reportedly involves using generative AI to convert text posts into video content. Additionally, requiring user logins will help protect access to Reddit's valuable data corpus.
Reddit currently maintains AI training agreements with OpenAI and Google. While Huffman declined to announce specific updates regarding these deals, he confirmed that the company is in active discussions and will pursue strategies that are economically and strategically beneficial. Financially, Reddit reported a 53% year-over-year revenue growth and a 16% increase in weekly active users for the third quarter of 2026. However, its share price fell following the announcement due to a lower-than-expected forecast for the upcoming quarter.
Sources: PC Gamer.