# Reddit’s data licensing revenue grows 24% to $43M as OpenAI and Google lead the buyer list > Source: > Published: 2026-08-17 12:40:27+00:00 Via theverge.com # Reddit’s data licensing revenue grows 24% to $43M as OpenAI and Google lead the buyer list The AI data goldmine investors were betting on still looks more like a side hustle, and the stock paid the price. Reddit just reported Q2 2026 earnings that should have been a victory lap. Total revenue hit $805 million, advertising surged 64% year-over-year to $762 million, and the company’s data licensing business grew 24% to $43 million. OpenAI and Google remained the two biggest customers for that data. The stock dropped more than 20%. The reason is simple math. Data licensing accounts for roughly 5% of total revenue. That’s not the trajectory the market was pricing in. ## A $43 million problem in an $805 million quarter Reddit’s advertising engine is firing on all cylinders. A 64% jump in ad revenue to $762 million is the kind of growth most public companies would frame on the wall. But Reddit’s stock has been trading less on what it is, an advertising platform, and more on what it could become, a critical data supplier for the AI industry. Reddit hosts one of the internet’s largest archives of human-generated conversation. OpenAI and Google both signed licensing agreements in early 2024, and at IPO, Reddit disclosed an aggregate $203 million in data licensing contract value. What really spooked investors was the absence of major new deals. Reddit’s existing partnerships with OpenAI and Google remain the backbone of the licensing business. ## The Google renewal question Adding to the anxiety is the looming question of Reddit’s licensing deal with Google. The agreement, valued at approximately $60 million annually, represents a significant chunk of the data licensing segment’s total output. There’s also an interesting wrinkle involving OpenAI CEO Sam Altman, who holds a significant stake in Reddit. That relationship predates the data licensing deal, but it adds a layer of complexity to how investors interpret the commercial terms between the two companies. ## The advertising story nobody wants to talk about Reddit’s core business is genuinely thriving. Growing ad revenue by 64% to $762 million means the company is executing well on its primary monetization strategy. But advertising businesses trade at advertising multiples. Data licensing businesses, especially ones selling to AI companies, trade at much richer valuations. Reddit had been enjoying the latter pricing while primarily delivering the former product. The Q2 results forced a recalibration. The more than 20% stock decline on July 30 reflects that repricing in real time. ## What to watch going forward The next few quarters will be telling for Reddit’s data licensing ambitions. Two variables matter most. First, the Google renewal. If Reddit can maintain or improve the terms of that approximately $60 million annual agreement, it stabilizes the segment’s foundation. If the deal shrinks or lapses, the licensing growth story takes a meaningful step backward. Second, new customer acquisition. Reddit needs to demonstrate that its data is valuable beyond its first two major customers. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).