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Reddit is the 2nd most-cited source in Google AI Overviews, but that might not mean much for its bottom line
Reddit is the 2nd most-cited source in Google AI Overviews, but that might not mean much for its bottom line

Business Insider

time15 hours ago

  • Business
  • Business Insider

Reddit is the 2nd most-cited source in Google AI Overviews, but that might not mean much for its bottom line

Reddit's relationship with Google is complicated. The social media forum, which went public last year and is under pressure like never before to attract advertisers and turn a profit, has recently enjoyed priority status on Google Search. And now that Google has launched its AI Overview, a natural language synopsis of search results at the top of the page, it seems its preference for citing Reddit remains. Analytics firm Semrush shared data this month on how AI-powered search is affecting traffic. It found that Reddit is the second most-cited website in Google AI Overviews, following Quora. "Quora and Reddit users often ask and answer niche questions that aren't addressed elsewhere. Making them rich information sources for highly specific AI prompts," the study's authors wrote. "Reddit may also perform well because Google has a partnership with Reddit and uses Reddit data to train its systems." Reddit and Google entered a partnership, worth a reported $60 million, in 2024 that allowed Google to train its AI models on Reddit's content. Google said the deal would "facilitate more content-forward displays of Reddit information." All of this has helped Reddit increase its traffic over the last year, which might entice more advertisers. That traffic, however, is largely coming from so-called logged-out users, meaning they aren't account holders at Reddit and are unlikely regular visitors. Analysts at Redburn called much of Reddit's growth"misconstrued." "Accelerated user growth has been driven predominantly by logged-out users who arrive on the platform largely via Google Search," the Redburn analysts wrote in March. "These users are much less valuable to Reddit as they are typically just looking for an answer to a query and thus spend little time on the platform." And while Google AI Overview might often cite Reddit as a source, the way it displays search results in a natural language summary means many searchers will be less likely to click through to Reddit itself. Reddit's stocks fell in May after Google launched its new AI Mode, as concerned analysts said the new feature would likely decrease traffic to Reddit.

Educational tech company Chegg sues Google over AI Overviews
Educational tech company Chegg sues Google over AI Overviews

Yahoo

time25-02-2025

  • Business
  • Yahoo

Educational tech company Chegg sues Google over AI Overviews

Educational tech company Chegg has sued Google in federal court claiming that its "AI Overviews" that appear ahead of search results have hurt its traffic and revenue. In order to be included in Google's search results, Chegg alleges, it must "supply content that Google republishes without permission in AI-generated answers that unfairly compete for the attention of users on the internet in violation of antitrust laws of the United States." Previously, publishers like The New York Times have sued AI companies over copyright infringement, accusing them of training large language models (LLMs) on IP material without permission. However, Chegg is taking another approach, instead accusing Google of abusing its monopoly position to force companies to supply materials for its "AI Overviews" on its search page. Failing to do so, it says, means it could effectively be excluded from Google Search altogether. Chegg included a screenshot of a Google AI Overview that takes details from Chegg's website without attribution, though the page in question appears lower down in the search results. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Google told CNBC that it would defend itself against the suit. "Every day, Google sends billions of clicks to sites across the web, and AI Overviews send traffic to a greater diversity of sites," a spokesperson said. Google's use of its monopoly power in this way "amounts to a form of unlawful reciprocal dealing that harms competition in violation of the Sherman Act," Chegg claimed, while citing a federal judge's ruling from last year that Google is a monopolist in search. The tech-ed company said that it is particularly affected by these practices because the "breadth, depth, quality and volume of Chegg's educational content holds enormous value for artificial intelligence applications." Chegg is the latest in a long list of companies suing Google over alleged misappropriation of IP content, though as mentioned, using the Sherman Act is a novel approach. As of January 2025, 38 copyright lawsuits related to AI have been filed in the US, according to a site keeping track of the claims — so far with mixed results.

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