Reddit threatening to cut off Google AI is extremely bullish for $RDDT

There is absolutely no way Google lets Reddit go. Google Search - per Google’s *own* Search AI - states that Search relies heavily on Reddit through its data-licensing partnership and also to train its Gemini models. Google currently only pays Reddit $60m a year. This is an absolute STEAL. Considering that Google capex is expected to rise to $45 billion this **quarter alone,** coupled with the news earlier that Google has started its “most ambitious pre-training for the upcoming Gemini 4 model”, there is no way Google continues a stand-off with Reddit or risks letting them walk. The downside of playing chicken with Reddit far outweighs them just paying Reddit a higher fee to continue to use their content. I think they will easily pay Reddit $1bn a year to renew their license. That would be +50% Reddit’s 2025 TOTAL revenue.

TL;DR Google will absolutely just pay Reddit more money for AI licensing. $RDDT is wrongly punished for this when it should only be seen as bullish. NFA